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HomeMy WebLinkAboutFinal Agenda Packet CITY OF RENTON AGENDA - City Council Regular Meeting 7:00 PM - Monday, April 6, 2020 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. ADMINISTRATIVE REPORT 4. PROCLAMATION a) Volunteer Month - April 2020 5. AUDIENCE COMMENTS In response to COVID-19, Councilmembers are attending this meeting remotely. City Hall is closed, however, residents are encouraged to participate by submitting comments in advance. Email cityclerk@rentonwa.gov. Residents may also call-in to listen to the proceedings. The call-in number is 425-430-7171 then enter the code 033665# to join the meeting. 6. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a) Approval of Council Meeting minutes of March 23, 2020. Council Concur b) AB - 2623 Mayor Pavone appoints Mr. James Alberson to the Planning Commission for a term expiring on June 30, 2022. Refer to Planning & Development Committee c) AB - 2621 City Clerk submits the 2020 Independent Salary Commission Salary Report which increase Councilmember salary from $1,250 per month to $1,750 per month, and the Council President salary from $1,450 per month to $2,050 per month. No changes were made to other benefits Councilmembers currently receive. None; Information Only d) AB - 2624 Community & Economic Development Department submits the 2020 Title IV Docket #15 Amendments for review. Following this review, the Planning Commission will present code revision recommendations. Refer to Planning Commission and Planning & Development Committee e) AB - 2625 Community & Economic Development Department requests approval of a 100- percent waiver of eligible development and impact fees, estimated at $169,721, as provided in Renton Municipal Code (RMC) 4-1-210.B.4 for the Habitat for Humanity La Fortuna Phase II development. The City would contribute $19,385.62 or 20-percent of the total transportation, parks, and fire impact fees into those respective impact fee accounts. Refer to Finance Committee f) AB - 2626 Community & Economic Development Department recommends approval of the Multi-Family Housing Property Tax Exemption Agreement with the Renton Housing Authority, which addresses the terms and conditions for the Willowcrest Townhomes affordable homeownership project to receive a partial property tax exemption for twelve years upon completion. Refer to Planning & Development Committee 7. UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. 8. LEGISLATION 9. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) 10. ADJOURNMENT COMMITTEE OF THE WHOLE MEETING AGENDA (Preceding Council Meeting) 5:00 p.m. - MEETING REMOTELY Executive Session - Potential Litigation - RCW 42.30.110(1)(i) - Approx. 40 mins Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 To view Council Meetings online, please visit rentonwa.gov/councilmeetings \ Armondo Pavone Mayor '9 AGENDA ITEM #4. a) March 23, 2020 REGULAR COUNCIL MEETING MINUTES    CITY OF RENTON  MINUTES ‐ City Council Regular Meeting  7:00 PM ‐ Monday, March 23, 2020  Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way    CALL TO ORDER AND PLEDGE OF ALLEGIANCE    Mayor Pavone called the meeting of the Renton City Council to order at 7:00 PM and led the  Pledge of Allegiance.    ROLL CALL    Councilmembers Present:  Ruth Pérez, Council President  Randy Corman, Council Position No. 1  Angelina Benedetti, Council Position No. 2   Valerie O'Halloran, Council Position No. 3  Ryan McIrvin, Council Position No. 4  Ed Prince, Council Position No. 5  Kim‐Khánh Vǎn, Council Position No. 7  (all Councilmembers participated electronically)  Councilmembers Absent:                            ADMINISTRATIVE STAFF PRESENT    Armondo Pavone, Mayor  Robert Harrison, Chief Administrative Officer  Alex Tuttle, Assistant City Attorney   Jason Seth, City Clerk  Mike Stenhouse, Acting Public Works Administrator  Jan Hawn, Administrative Services Administrator  Ellen Bradley‐Mak, Human Resources and Risk Management Administrator  Kelly Beymer, Community Services Administrator  Chief Ed VanValey, Police Department Administrator  Commander Jeff Hardin, Police Department  (all staff participated electronically except City Clerk Jason Seth and Police Commander Jeff Hardin)        AGENDA ITEM #6. a) March 23, 2020 REGULAR COUNCIL MEETING MINUTES  ADMINISTRATIVE REPORT    Chief Administrative Officer Robert Harrison reviewed a written administrative report  summarizing the City’s recent progress towards goals and work programs adopted as part of  its business plan for 2020 and beyond. Items noted were:   Census invitations have been arriving in your mailbox. Please don’t delay, take the  time to register with the Census. The city receives an ongoing update of how many  Renton residents have registered and we are starting to fall behind again in our  census counts. Please take a few minutes to complete your census. Reach out to a  neighbor and see if they need help or simply a reminder. You can do your part to help  Renton fully count all of our community members!   You can find information on the city’s website and social media pages regarding the  city’s COVID‐19 response. Additionally, the Mayor’s newsletter is issued daily around  the end of the day and has the most up‐to‐date information and access to state and  county resources. If you haven’t signed up for the Mayor’s newsletter, you can do so  at http://rentonwa.gov/mnl.    Preventative street maintenance will continue to impact traffic and result in  occasional street closures.     AUDIENCE COMMENTS     City Clerk Seth read emails sent in by the following residents: Chris Edson, Wayne  Delaronde, and Yolanda Martinez.    CONSENT AGENDA  Items listed on the Consent Agenda were adopted with one motion, following the listing.   a) Approval of Council Meeting minutes of March 16, 2020. Council Concur.   b) AB ‐ 2607 Utility Systems Division submitted the Lake Youngs Ct SE Storm & Water  Improvements project, CAG‐19‐152, contractor Oceanside Construction, Inc., and requested  acceptance of the project and authorization to release the retainage bond after 60 days, once  all the required releases from the State have been obtained. Council Concur.   c) AB ‐ 2611 Transportation Systems Division recommended approval of Supplemental  Agreement No. 6 to CAG‐15‐089, contractor KPG, P.S., in the amount of $219,072, for  additional work for the Rainier Ave S Phase 4 (S 3rd St to NW 3rd Pl) project. Council Concur.    MOVED BY PÉREZ, SECONDED BY O'HALLORAN, COUNCIL CONCUR TO APPROVE  THE CONSENT AGENDA, AS PRESENTED. CARRIED.    LEGISLATION   Resolutions:   a) Resolution No. 4403: A Resolution was read authorizing the sale of a portion of City‐owned  property, grant of two temporary easements over portions of City‐owned property, and grant  of an access easement over a portion of City‐owned property, to the State of Washington  Department of Transportation (“WSDOT”), in relation to WSDOT’s I‐405 Renton to Bellevue  widening and express toll lanes project, and authorizing the Mayor to sign the necessary  documents and take the necessary actions to transfer title and grant the easements.   AGENDA ITEM #6. a) March 23, 2020 REGULAR COUNCIL MEETING MINUTES   MOVED BY MCIRVIN, SECONDED BY PÉREZ, COUNCIL ADOPT THE RESOLUTION AS  READ. CARRIED.   b) Resolution No. 4404:  A resolution was read supporting the State Moratorium on residential  evictions for non‐payment of rent and supporting Mayor Pavone's Emergency Order #2020‐3  supporting the same.     MOVED BY PÉREZ, SECONDED BY CORMAN, COUNCIL ADOPT THE RESOLUTION AS  READ. CARRIED.   Ordinance for second and final reading:   c) Ordinance No. 5961: An ordinance was read establishing the Latecomer Assessment for the  Sunset Lane NE Improvement Project, providing for severability, and establishing an effective  date.    MOVED BY PRINCE, SECONDED BY CORMAN, COUNCIL ADOPT THE ORDINANCE  AS READ. ROLL CALL: ALL AYES. CARRIED.    NEW BUSINESS   Please see the attached Council Committee Meeting Calendar.    Councilmember McIrvin remarked that he would like to revisit the issue of the eviction  moratorium and the concept of waiving late fees for renters.    Discussion ensued regarding waiving some late fees for renters, ensuring people understand  that if they can pay rent or other bills during this time they should do so, and any guidance  from the City should align with guidance from the Rental Housing Association.    MOVED BY MCIRVIN, SECONDED BY PÉREZ, COUNCIL REFER THE TOPIC OF  REVISITING THE EVICTION MORATORIUM AND THE NOTION OF WAIVING LATE  FEES FOR RENTERS TO THE ADMINISTRATION. CARRIED.    Councilmember Vǎn remarked that she would like the administration to consider creating a  Small Business Stabilization Fund.    Extensive discussion ensued regarding the feasibility and legality of the issue.     MOVED BY VǍN, SECONDED BY CORMAN, COUNCIL REFER THE TOPIC OF  RESEARCHING THE FEASIBILITY AND LEGALITY OF CREATING A SMALL BUSINESS  STABILIZATION FUND TO THE ADMINISTRATION. CARRIED.    ADJOURNMENT    MOVED BY PRINCE, SECONDED BY O'HALLORAN, COUNCIL  ADJOURN. CARRIED. TIME:  7:39 P.M.                 Jason A. Seth, MMC, City Clerk            Jason Seth, Recorder 23 Mar 2020   AGENDA ITEM #6. a) Council Committee Meeting Calendar March 23, 2020 March 30, 2020 Monday NO MEETINGS Fifth Monday April 6, 2020 Monday CANCELLED Community Services Committee, Chair Văn CANCELLED Transportation Committee, Chair McIrvin 5:30 PM Committee of the Whole, Chair Pérez – VIDEOCONFERENCE ONLY 1. Sound Transit Strategic Plan 2. Emerging Issues 7:00 PM City Council Meeting, Chair Pérez – VIDEOCONFERENCE ONLY AGENDA ITEM #6. a) AB - 2623 City Council Regular Meeting - 06 Apr 2020 SUBJECT/TITLE: Planning Commission Appointment: James Alberson RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Executive Department STAFF CONTACT: April Alexander, Executive Assistant EXT.: 6520 FISCAL IMPACT SUMMARY: None SUMMARY OF ACTION: Mayor Pavone appoints Mr. James Alberson to the Planning Commission for a term expiring June 30, 2022. EXHIBITS: A. Recommendation Memo B. Application STAFF RECOMMENDATION: Confirm Mayor Pavone's appointment of Mr. James Alberson to the Planning Commission. AGENDA ITEM #6. b) DATE:TO:FROM:SUBJECT:DEPARTMENTOFCOMMUNITY&ECONOMICDEVELOPMENTMEMORANDUMFebruary28,2020ArmondoPavone,MayorC.E.“Chip”Vincent,CEDAdministratorAppointmentofJamesAlbersontothePlanningCommissionThePlanningCommissioncurrentlyhasavacancyrequiringappointment.AngetinaBenedettihasresignedfromherpositiononthePlanningCommissionasshewasrecentlysworninasaRentonCityCouncilmember.HertermexpiresonJune30,2022.ImetwithJamesAlbersonandfeelheiswellqualifiedtoserveonthePlanningCommission.Hisapplicationisattached.StaffrecommendsappointmentofJamesAlbersontotheseatvacatedbyAngelinaBenedetti.c:\users\analexander\appdata\Iocal\microsoft\windows\inetcache\content.outlook\vuholaty\albersonreappointment.docx)AGENDA ITEM #6. b) HannahLMillerFrom:AprilAlexanderSentTuesday,February11,20201:23PMTo:HannahLMillerSubject:FW:ApplicationforBoards/Commissions/Committees2020-02-1111:45AM(PST)SubmissionNotificationFrom:notification@civiclive.com<notification@civiclive.com>Sent:Tuesday,February11,202011:45AMTo:AprilAlexander<analexander@Rentonwa.gov>Subject:ApplicationforBoards/Commissions/Committees2020-02-1111:45AM(PST)SubmissionNotificationApplicationforBoards/Commissions/Committees2020-02-1111:45AM(PST)wassubmittedbyGueston2/11/20202:45:27PM(GMT-O$:0O)Canada/PacificNameValueAirportAdvisoryCommittee*CivilServiceCommission*CommunityPlanAdvisoryBoard-BensonHillCommunityPlanAdvisoryBoard-CityCenterHistorical/MuseumBoard*RousingAuthority*HumanServicesAdvisoryCommittee*ParksCommission*PlanningCommission*PlanningCommission*MunicipalArtsCommission*SeniorCitizensAdvisoryBoard*SisterCityCommittee-CuautlaSisterCityCommittee-NishiwakiGenderMr.NameJamesAlbersonessJIl_imaiI“noneAltPhone:ResidentYesResidentSince1997formerresidencelilB.$.DegreeinComputerTechnology-PurdueUniversityEducationBackgroundMBADegreewithMarketingConcentration-PurdueUniversity1AGENDA ITEM #6. b) Tenyearsasbusinessownerofacompanythatfocusesonbusiness,management,andsalestrainingandconsulting.OccupationalDackground.Previoustothat,20yearsinthemedicalsalesindustry(Director,Manager,SalesRepresentative).‘.rs,,lf.’-—1Emp1oyer,.z.I.JjJLL1LLLJ_t&&LtJLL•_-&—___——mgI••-I-flfl1‘‘-CommunityActivitiesyears)HazenHighSchoolBoosterclubLaurelhurstCommunityOrganizationPresident(9years)Ihaveastrongdesiretocontributemyvoice,Reasonforapplyingknowledge,andabilitiestoservetheRentoncommunitybyhelpingtoshapethegrowthblueprintforthecity’sfuture.DayMeetingsDayMeetingsNightMeetingsNightMeetingsToviewthisformsubmissiononline,pleasefollowthelinkbelow:ps://rentonwa.gov/form/one.aspx?objectId=16454952&contextld=92I2967&returnto=submissions*2AGENDA ITEM #6. b) AB - 2621 City Council Regular Meeting - 06 Apr 2020 SUBJECT/TITLE: 2020 Independent Salary Commission RECOMMENDED ACTION: None; Information Only DEPARTMENT: City Clerk STAFF CONTACT: Jason Seth, City Clerk EXT.: 6502 FISCAL IMPACT SUMMARY: Councilmember Salary increased $500 per month to $1,750 per month Council President Stipend of $200 above regular salary increased to $300 above regular salary 2020 impact approximately $4,800 SUMMARY OF ACTION: Ordinance No. 5773 calls for the creation of an Independent Salary Commission every four years. As an independent decision-making body, the Commission is charged with evaluating the full compensation, including salaries and benefits, of Renton City Councilmembers. The responsibilities of the Commission includes studying the relationship of salaries to the duties of Council President and Councilmembers, and the costs personally incurred by Councilmembers while performing those duties; studying the relationship of salary and Renton City Councilmember salaries and benefits to those of other jurisdictions; establishing salary and benefits by increasing or decreasing current compensation; and filing a salary and benefit compensation report with the City Clerk within 90 days. On March 11, 2020, the 2020 Independent Salary Commission met and filed the attached 2020 Independent Salary Commission Report on March 31, 2020. Highlights of the report include: 1. 1) $500 per month increase in salary for Councilmembers: a. Current Salary $1,250 - New Salary $1,750 2. 2) $100 increase to Council President Stipend a. Current Council President salary $1,450 - New Council President salary $2,050 The changes take effect 30 days after the 3/31/2020 filing date to allow for the filing of an y potential referendums opposing the increase. The effective date is therefore set for May 1, 2020. EXHIBITS: A. 2020 Independent Salary Commission Salary Report B. ORD 5773 STAFF RECOMMENDATION: N/A AGENDA ITEM #6. c) March 11, 2020 Armondo Pavone, Mayor Jason Seth, City Clerk From: 2020 Independent Salary Commission RE: Formal Report, Findings, & Conclusion – Salary and Compensation Schedule Background: Renton City Council adopted Ordinance 5773 to establish an Independent Salary Commission to review councilmember compensation. Mayor Pavone appointed and Council confirmed the following five members to the 2020 Independent Salary Commission on February 24, 2020. 1. David Kroeger 2. Kimberly Searing 3. Julio Amador 4. Don Persson 5. Jeff Kelly The meeting of the 2020 Independent Salary Commission was called to order on March 11, 2020 at 5:30 p.m., in the Council Conference Room of Renton City Hall, 1055 S. Grady Way. City staff present included Jan Hawn, Administrative Services Administrator; Ellen Bradley-Mak, Human Resources and Risk Management Administrator; Kim Gilman, Human Resources Labor Manager; and Jason Seth, City Clerk. After a brief introduction, the Commission members selected Dave Kroeger and Kimberly Searing as Chair and Vice-Chair, respectively. Review of Commission’s Roles and Responsibilities: Chair Kroeger proceeded and called on Mr. Seth for an overview of the Commission’s purpose. Mr. Seth explained that the Commission was to examine City of Renton Councilmember salary and benefits. He added that Councilmember salaries and benefits have not been reviewed since 2015. The Commission reviewed its duties as outlined in the Renton Municipal Code (RMC 2-20-04). As an independent decision-making body, the Commission is charged with evaluating the full compensation, including salaries and benefits, of Renton City Councilmembers. The responsibilities of the Commission include studying the relationship of salaries to the duties of Council President and Councilmembers, and the costs personally incurred by Councilmembers while performing those duties; studying the relationship of salary and Renton City Councilmember salaries and benefits to those of other jurisdictions; establishing salary and benefits by increasing or decreasing current compensation; and filing a salary and benefit compensation report with the City Clerk within 90 days. AGENDA ITEM #6. c) Review of City Council Roles and Responsibilities: Mr. Seth reviewed a summary of the roles of the City Council (legislative branch) vs. that of Mayor (executive branch), and the additional duties required of the Council President; the number of council, council committees, and regional meetings Renton City Council attend; and an estimated weekly time (30-32 hours) councilmembers dedicate to fulfill their responsibilities. Mr. Persson, having recently retired as a City Councilmember, noted that the complexity of a number of issues has led to hours of service per week compared to that of 2015. It was also noted that Renton City Council meets in regular session more frequently than most of the comparable cities used to evaluate the salaries and benefits. Review of Council Compensation among Comparable Cities: Ms. Gilman presented the comparable cities information chart. She explained that the survey included many of the same cities the Human Resources Department uses when surveying salaries for regular city positions and is the same list of Cities that was used by the Commission in 2015. Ms. Bradley-Mak added that Renton typically considers compensation within a range of 5% +/- of the average of the comparable communities. Ms. Gilman pointed out the different forms of government, noting that mayors are selected from amongst the councilmembers for the council/manager form of government, and perform duties similar in nature to Renton’s Council President. She explained, therefore, they were included as comparison for Council President compensation. It was also noted that the comparable cities provide a wide variety of other benefits that range from car allowances to meeting stipends, and that all cities offer some medical coverage for Councilmembers. With all factors considered, the survey results for Council compensation showed Renton is approximately 30% below market. Analysis and Deliberation: The Commission recognized that Council work requires a substantial time commitment, an ability to grasp complex government issues, and the expertise to delve deeply and quickly into all phases of City functions. The Commission agreed that these are elected, part-time, public service positions and compensation should not unduly influence, in either direction, the consideration to run for public office. The commission also agreed it should look at all aspects of the work, and set salary and/or benefits at a level that recognizes the degree and importance of the work and commitment required to be a Councilmember. Extensive debate between Commissioners ensued. The debate covered topics including determining the average salary of the comparable cites, determining the average salary after removing the two highest paid cities, determining the average salary after removing the two lowest paid cities, and using anecdotal evidence to warrant an increase. At the end of the discussion the Commissioners agreed that an increase was warranted for Councilmembers. Mr. Persson then discussed the increased duties required of the Council President. The Commissioners agreed that the Council President position also warranted an increase. The debate among Commissioners then moved towards determining how much of an increase was warranted for Councilmembers and the Council President position. AGENDA ITEM #6. c) Finding and Conclusions: Base on the above discussion, the 2020 Independent Salary Commission found that: 1. Renton councilmembers are paid a salary of approximately 30% less than their comparable counterparts. 2. The salary and compensation is not intended to compensate Councilmembers for work actually performed but rather as recognition of the time, expertise and commitment that this public service work requires. 3. Benefits offered are different and difficult to compare. The only benefit that is offered consistently is the medical coverage for Councilmembers. The city does not provide a per-meeting based stipend, but under Renton's expense and reimbursement policies, Councilmembers are eligible for reimbursement of expenses including travel for assigned/approved regional meetings (e.g. mileage, lodging, parking, meals) and certain office and operating supplies. The Commission understands, historically, very few reimbursement requests have been submitted by Councilmembers. 4. The Commission recommended that the City continue to review Council compensation every four years. Following the discussion, it was MOVED BY AMADOR, SECONDED BY PERSSON, TO INCREASE COUNCILMEMBER SALARY FROM $1,250 PER MONTH TO $1,750 PER MONTH. CARRIED. It was MOVED BY PERSSON, SECONDED BY AMADOR, TO INCREASE THE ADDITIONAL $200 PER MONTH STIPEND FOR COUNCIL PRESIDENT COMPENSATION TO $300 PER MONTH. CARRIED. The Commission determined that no changes to additional benefits were required at this time. The Commission further discussed the effective date and agreed to set it for 30 days following Council acceptance of this report, to allow for the 30-day referendum filing period. NOW THEREFORE, the Commission establishes the following Salary and Compensation Schedule: Section 1. Salary: To continue to attract and maintain qualified City Councilmember candidates, to keep Renton in line with the current market, and to recognize the time commitment that a Councilmember position requires, the Commission hereby determined an increase in salaries is warranted; and hereby establishes the salaries, with an effective date of 30 days after Council accepts this report, as follows: POSITION CURRENT SALARY NEW SALARY Council President $1,450 per month $2,050 per month Council President Pro Tem $1,250 per month $1,750 per month Councilmembers $1,250 per month $1,750 per month Section 2. Benefits: The Commission determined that the no change is warranted at this time regarding benefits. AGENDA ITEM #6. c) Section 3. Future Councilmember Compensation Review: The Commission recommended that the City continue to reevaluate Council salary and benefits every four years, per Ordinance 5773. The Salary and Compensation Schedule is subject to referendum in the same manner as a City ordinance. As required by law, a referendum petition must be filed with the City Clerk within thirty (30) days from the date of this schedule’s official filing date. If a valid petition is filed, the salary adjustment will not go into effect unless approved at a subsequent referendum election. APPROVED by the 2020 Independent Salary Commission, and FILED with the City Clerk this 31st day of March, 2020. ________________________ David Kroeger, Chair ________________________ Kimberly Searing, Vice-Chair ________________________ Don Persson, Member ________________________ Jeff Kelly, Member ________________________ Julio Amador, Member AGENDA ITEM #6. c) CITY OF RENTON, WASHINGTON ORDINANCE NO. 5773 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 1-5-1 OF CHAPTER 5, COUNCIL, OF TITLE I (ADMINISTRATIVE), ADOPTING A NEW CHAPTER 20, ENTITLED "INDEPENDENT SALARY COMMISSION," OF TITLE II (COMMISSIONS AND BOARDS), AND AMENDING SECTION 5-3-1 OF CHAPTER 3, SALARIES, OF TITLE V (FINANCE AND BUSINESS REGULATIONS) OF THE RENTON MUNICIPAL CODE, ESTABLISHING AN INDEPENDENT SALARY COMMISSION. WHEREAS, the Revised Code of Washington (RCW) section 35.21.015 authorizes municipalities to establish an independent salary commissions to review and set the salaries for elected officials; and WHEREAS, The City Council currently reviews and sets compensation for the members of the City Council, which was most recently done in July 2004 via Ordinance No. 5090; and WHEREAS, The City Council currently sets compensation for the Mayor by ordinance in conjunction with regular budget processes; and WHEREAS, Ordinance No. 5245 adopted on December 11, 2006 sets the compensation for the elected Judge to be at least ninety-five percent (95%) of a district court judge salary which is adjusted regularly; and WHEREAS, the Council wishes to address the compensation of the City Council Members in a more consistent and uniform manner as other elected city officials; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: 1 AGENDA ITEM #6. c) 1 ORDINANCE NO. 5773 SECTION I. Subsection 1-5-1.0 of subsection 1-5-1, Number of Councilmembers; Duties; Salaries, of Chapter 5, Council, of Title I (Administrative) of the Renton Municipal Code, is hereby amended as follows: C. The salaries of the Councilmembers are hereby fixed at nine hundred fifty dollars ($950.00) per month plus two percent (2%) of salary for deferred com ensation lus for those Councilmembers not participating in PERS, an extrapp one point four percent (1.4%of salary for deferred compensation. However, the compensation of such elected officials who fix their own compensation shall not be increased during their terms of office, and as limited by the Constitution and statutes of the State of Washington. The salaries of Councilmembers mav also be adiusted accordin to the procedures and rules established bv chapter RMC 2- 20. Independent Salarv Commission. SECTION II. Title II (Commissions and Boards) of the Renton Municipal Code, is hereby amended to add a new Chapter 20, entitled "Independent Salary Commission" to read as follows: CHAPTER 20 INDEPENDENT SALARY COMMISSION SECTION: 2-20-1 Commission Established 2-20-2 Purpose 2-20-3 Qualifications 2-20-4 Membership 2-20-5 Meetin s 2 AGENDA ITEM #6. c) ORDINANCE NO. 5773 2-20-6 Responsibilities 2-20-7 Effective Date—Salaries 2-20-8 Salarv Schedule Subiect To Referendum Petition 2-20-1 COMMISSION ESTABLISHED: An Independent Salarv Commission is herebv established pursuant to RCW 35.21.015, hereinafter referred to as the Citv of Renton Independent Salary Commission ("Commission"1. 2-20-2 PURPOSE: The Commission shall review and establish the salaries of the, Councilmembers and exercise the powers and aerform the duties established bv RCW 35.21.015. as now existing or hereafter amended. For the purposes hereof, the salary authoritv of the independent salarv commission shall include all comaensation that mav be aaid to or received bv councilmembers. whether or not it is identified as salarv. I! 2-20-3 QUAUFICATIONS: A. Members must be a resident of the Citu for at least one (1) vear immediatelv precedin such appointment, and a re istered voter of Kin Countv. B. No officer, official, or emalovee of the Citv or anv of their immediate familv members mav serve on the Commission. "Immediate familv member" as used in this subsection means the parents, spouse, siblin s, children, or deaendent relatives of the officer, official, or emplovee, whether or not livin in the household of the officer, official, or emplovee. 3 AGENDA ITEM #6. c) ORDINANCE NO. 5773 2-20-4 MEMBERSHIP: A. Number of Members:The Commission shall consist of five (5) members. B. Appointment: Members shall be appointed bu the Mavor, subiect to confirmation bv the Citv Council. Members shall be selected without respect to political affiliations and shall serve without compensation. C. Terms: Members of the Commission shall serve their term upon aaaointment and Council confirmation, until the salarv review is complete and a salarv schedule has been filed with the Citv Clerk or until determination is made. that no salarv adiustment is appronriate. No member mau be appointed to more than two f21 terms on the Commission, whether or not those terms are held consecutivelv. D. Removal: Members mav be removed bv the Mavor, onlv. durin their terms of office for cause includin incapacitv. incompetence, ne lect of dutv. or malfeasance in office or for a disqualifvin chan e of residence. E. Vacancies: Vacancies occurrin shall be filled for the unexpired terms, in the same manner as aapointments in subsection B of this section. F. Quorum: Three f31 members shall constitute a auorum. G. Chair and Vice-Chair: The Commission shall elect a chair and vice-chair from amon its votin members. 2-20-5 MEETINGS: A. The Mavor will appoint appropriate staff to assist the Commission. 4 AGENDA ITEM #6. c) ORDINANCE NO. 5773 B. The Commission shall keep a written record of its aroceedin s, which shall be a public record in accordance with State law, and shall activelv solicit public comment at all meetin s. The meetin s shall be subiect to the Open Public Meetings Act. Chapter 42.30 RCW, as amended or recodified. C. The Commission shall meet as often as necessara in order to file a schedule with the Citv Clerk, on or before November 30, 2015. Once a schedule has been filed. the Commission will not meet until the Citv Council confirms a new Commission for aurposes of further studvin Citv Council compensation. 2-20-6 RESPONSIBILITIES: The Commission shall have the followin responsibilities: A. To studv the relationship of salaries to the duties of Council President and Councilmembers and to studv the costs personallu incurred bv Councilmembers in performin such duties; B. To studv the relationship of Renton Council salaries and benefits to those salaries and benefits of Councilmembers in surroundin Citv iurisdictions and other current market conditions; C. To establish salarv and benefits bv either increasing or decreasin the existin salarv and benefits of each position bv an affirmative vote of not less than three (3) members: and D. To review and file a salarv and compensation schedule with the Cit Clerk no later than November 30. 2015. Future Commissions shall have ninetv (901 5 AGENDA ITEM #6. c) ORDINANCE NO. 5773 davs after confirmation bv the Citv Council to complete their review and file the necessarv salarv and compensation schedule. 2-20-7 EFFECTIVE DATE—SALARIES: A. The Commission established or amended salaru schedule will become effective in the amounts, at the times, and under the conditions established in the schedule. B. Anv increase or decrease in salarv shall become effective and incorporated into the Citv bud et without further action of the Citu Council or the Commission. C. Salarv increases established bv the Commission shall be effective as to all Council elected officials. re ardless of their terms of office. D. Salarv decreases established bv the Commission shall become effective as to incumbent Council elected officials at the commencement of their next subseauent terms of office. E. Anv adiustment of salarv bv the Commission shall supersede anv Citv ordinance related to the bud et or to the fixin of salaries. 2-20-8 SALARY SCHEDULE SUBJECT TO REFERENDUM PETITION: A. Salarv increases and decreases shall be subiect to referendum petition in the same manner as an ordinance uaon filin of such petition with the Citv Clerk within thirtv (30) davs after filin of the salarv schedule. In the event of the filin of a valid referendum petition, the salarv increase or decrease shall not o into effect until approved bv vote of the people. 6 AGENDA ITEM #6. c) ORDINANCE NO. 5773 B. Referendum measures under this section shall be submitted to the voters, of the Citv at the next followin eneral or municipal election occurrin thirtv 301 davs or more after the petition is filed, and shall be otherwise overned bv the provisions of the Washin ton State Constitution, Chapter 1-2 Renton Municipal Code. or laws enerallv aaplicable to referendum measures. SECTION III. Section 5-3-1, Salaries of Elective Officers, of Chapter 3, Salaries, of Title V Finance and Business Regulations) of the Renton Municipal Code, is hereby amended as follows: 5-3-1 SALARIES OF ELECTIVE OFFIC RIALS: The elective officials, consisting of the Mayor and members of the City Council, shall receive the salaries fixed and established by City ordinances from time to time and as otherwise provided by law. The salaries of Councilmembers mav also be adiusted accordin to the procedures and rules established bv. chaater RMC 2-20. Independent Salarv Commission. SECTION IV. This ordinance shall be effective upon its passage, approval, and thirty 30) days after publication. PASSED BY THE CITY COUNCIL this 19th day of October 2015. 6 Jaso A. Seth, ity Clerk 7 AGENDA ITEM #6. c) ORDINANCE NO. 5773 APPROVED BY THE MAYOR this 19th day of October 2015. i Denis Law, Mayor 11111 IIUIlIU F REIy y/.Approved as to form: at.,,,,,., s._ k 5 = Lawrence J. Warren, City Attorney 6' i,s'\ a/lIIpIIH11H111111\\\\ Date of Publication: 10/23/2015 (summary) ORD:1885:10/5/15:scr 8 AGENDA ITEM #6. c) AB - 2624 City Council Regular Meeting - 06 Apr 2020 SUBJECT/TITLE: 2020 Title IV Docket #15 Amendments Review RECOMMENDED ACTION: Refer to Planning Commission and Planning & Development Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Angie Mathias, Long Range Planning Manager EXT.: 6576 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: RMC 4-8-070G outlines the types of review the Planning Commission shall conduct. The review of the Development Regulations (Title IV Docket) process is specifically listed. Land Use Regulations review occurs upon Council request. The Planning Commission will make recommendations regarding the Land Use Regulations to the Council. Final recommendation of the Title IV Docket will be the authority of the Council. Title IV Development Regulations This process is codified in RMC 4-9-025, Title IV Development Regulation Revision Process. Staff has compiled a series of amendments to Title IV of the Renton Municipal Code (Development Regulations) that initiates several regulatory initiatives that respond to important issues facing the City. The proposed list of amendments includes City initiated amendments as shown in the 2020 Title IV Docket #15 Amendments Table and was arrived at after consultation with the Planning Commission and Planning & Development Committee. EXHIBITS: A. Issue Paper STAFF RECOMMENDATION: Refer the 2020 Title IV Docket #15 Amendments to the Planning and Development Committee and Planning Commission for review. Following this review, the Planning Commission will present code revision recommendations to Council. AGENDA ITEM #6. d) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:March 30, 2020 TO:Ruth Perez, Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:C. E. “Chip” Vincent, CED Administrator (x6588) STAFF CONTACT:Angie Mathias, Long Range Planning Manager (x6576) SUBJECT:2020 Title IV Docket #15 Amendments Review ISSUE: Should the 2020 Title IV Docket #15 Amendments be referred to the Planning & Development Committee and the Planning Commission? RECOMMENDATION: Refer the 2020 Title IV Docket #15 Amendments to the Planning and Development Committee and Planning Commission for review. Following this review, the Planning Commission will present code revision recommendations to Council. BACKGROUND SUMMARY: RMC 4-8-070G outlines the types of review the Planning Commission shall conduct. The review of the Development Regulations (Title IV Docket) process is specifically listed. Land Use Regulations review occurs upon Council request. The Planning Commission will make recommendations regarding the Land Use Regulations to the Council. Final recommendation of the Title IV Docket will be the authority of the Council. Title IV Development Regulations This process is codified in RMC 4-9-025, Title IV Development Regulation Revision Process. Staff has compiled a series of amendments to Title IV of the Renton Municipal Code (Development Regulations) that initiates several regulatory initiatives that respond to important issues facing the City. The proposed list of amendments includes City initiated amendments as shown in the 2020 Title IV Docket #15 Amendments Table and was arrived at after consultation with the Planning Commission and Planning & Development Committee. CONCLUSION: The proposed schedule for review of the Title IV Docket #15 Amendments is for the Planning Commission review to occur during April 2020 to November 2020. AGENDA ITEM #6. d) 2020 TITLE IV DOCKET #15 AMENDMENTS City Initiated Amendments Tree Retention The City tree retention standards were updated 8 years ago. After eight years of experience applying these regulations, staff has identified portions that need amendments to ensure the purpose of the code regulations are met. Re-evaluate the City’s tree retention standards to ensure the code incentivizes tree retention by possibly considering charging mitigation for lost tree value, requires protected trees to be located within tracts or defined tree protection zones (when associated with a subdivision), and update tree protection measures to meet industry standards. *see 01/15/20 email from Ian Gray Minimum Density of the CD Zone Consider raising the minimum density, and removing the current exemption from that standard, in the CD zone to facilitate new development that furthers the vision for the zone. Zoning Map/Adoption Process RMC 4-2-030 Zoning Map Interpretation, provides the means to determine boundaries of zones where the delineation is unclear. The Section needs to be amended to provide clarity and to not refer to legal descriptions in zoning ordinances. Additionally, map PUD’s and Merritt Short Plan Urban Separator. Noise Variance Process Sections 4-9-250.B and 8-7-8.C contain conflicting process and procedures, specifically those for variances and noise variances. The sections should be reviewed and streamlined. Reduced Fees for Daycares Evaluate the possibility of scaled or tiered approach that categorizes daycares based on number of children service. Delivery Companies Establish criteria and/or conditions for delivery companies that provide service from warehouses to residences in the Temporary Use section. Stand Alone Solar Panel/Solar Access Solar panels are generally installed on roofs, however, stand-alone panels have begun to be installed in other communities. There is no code for these. This item will establish standards for them. Also, policies and regulations for solar access will be considered. Affordable Housing/ADU Funding Accessory Dwelling Units o Reduce/eliminate fees o Eliminate requirement for separate utility connections o Create model base plans for each residential zoning classification Affordable Housing Options, Development Standards Cottage Housing Density: create standards that encourage and facilitate the creation of cottage housing. Modification of housing types for affordable housing through PUDs Review code for usages and definitions of affordable housing. Align and standardize language. Bonus Density: align bonus density language (RMC 4-9-065) on use of third parties to document compliance with affordable housing requirements with that contained in RMC 4-1-210 and RMC 4-1-220. Self Storage in the CA Zone Consider where self storage should be allowed. Possibly restrict from CA zone City Center or other community planning areas. Waived Fees Update RMC 4-1-210 to be consistent with state law permitting a maximum of an 80% fee waiver instead of the current 100% fee waiver. In addition, add criteria for Council to consider when deciding to approve, partially approve, or deny a fee waiver request, and consider establishing a maximum threshold of number of units that AGENDA ITEM #6. d) are authorized. If necessary, add code language that clarifies approvals of fee waivers should be approved via a resolution. Small Cell Wireless Regulations Update to ensure that they are compliant with Orders issued by the Federal Communications Commission. (47 CFR Part 76 Implementation of the Cable Communication Policy Act of 1984 as Amended by the Cable Television Consumer Protection and Competition Act of 1992, and 47 CFR Part 1, Accelerating Wireless and Wireline Broadband Deployment by Removing Barriers to Infrastructure Investment). The regulations require alignment with the FCC with regard to limits on processing time (shot clocks), application submittals (batching), size of facilities, and processing time. Urban Separator Regulations Update 4-3-110, Urban Separator Regulations, to ensure protection of the urban separator open space. Utilize regulatory rules instead of easement/tract dedication requirements. Center Village (CV) Zone Consider establishing a split between affordable housing and market rate housing in the CV zone in the Sunset area. Fee for Derelict Properties Consider establishing a fee/penalty for vacant or derelict properties within the City. Administrative Code Interpretations (from December 2018 to Current) CI-149, Downtown Window Transparency CI-150, Preschool and Daycare Permissibility CI-151, Slotted Drain Usage CI-152, Applicability of 4-4-055, Short Term Rentals CI-153, Administrative Fee for the Collection of School Impact Fees CI-154, Special Administrative Fence Permit Eligibility CI-155, Definition of Townhouse CI-156, Enforcement of Violations 4-4-085 AGENDA ITEM #6. d) AB - 2625 City Council Regular Meeting - 06 Apr 2020 SUBJECT/TITLE: Habitat for Humanity South King County LaFortuna Phase II Development Fee Waiver Request RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Alex Morganroth, Senior Planner EXT.: 7219 FISCAL IMPACT SUMMARY: The estimated total fees requested to be waived for the Habitat for Humanity LaFortuna Phase II project are $169,721. If approved, these waived fees would represent an estimated savings of $14,143 per townhome. The City would contribute $19,385.62 or 20-percent of the total transportation, parks, and fire impact fees into those respective impact fee accounts. The City contribution would be from CED’s existing operational budget. SUMMARY OF ACTION: Habitat for Humanity South King County has requested a waiver of development and impact fees for the La Fortuna Phase II project. This project includes 12 owner-occupied townhomes at the development site at 12710-12748 SE 173rd St and 17210-17324 127th Pl SE in Renton, WA. The subject property is 4.5 acres. The subject property is located within the Residential -10 du/ac (R-10) zoning designation. A total of 23 owner-occupied townhome units in four separate buildings currently exist on the site. King County processed the requisite land use entitlements for the existing townhomes prior to the parcel’s annexation into the City of Renton in March of 2008. Building permits and Certificates of Occupancy for the four existing buildings were processed and issued by the City of Renton after annexation. The total number of units in the development after construction of the new units will be 35 (23 existing units + 12 new units). The areas of the site where the new units are proposed is owned by Habitat for Humanity South King County (HFHSKC). Once completed, all 12 units will be held in the Habitat Land Trust and administered by HFHSKC. HFHSKC will sell the individual units to the buyer and retain ownership of the land. An individual ground lease is executed with the homebuyer at the time of sale. In order to ensure the units would be permanently affordable, the ground lease gives HFHSKC the first option to purchase the home if the homeowner sells the property using a sales price calculated by a formula embedded in the ground lease document. The La Fortuna Phase II townhomes would be priced for homeowners below the 80% area medium income range. EXHIBITS: A. Issue Paper B. Permit Fee Waiver Table C. Resolution STAFF RECOMMENDATION: Approve a 100-percent waiver of the eligible development and impact fees as provided in Renton Municipal Code (RMC) 4-1-210B.4 for the Habitat for Humanity La Fortuna Phase II development. AGENDA ITEM #6. e) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:April 6, 2020 TO:Ruth Peréz, Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:C.E. “Chip” Vincent, CED Administrator x6588 STAFF CONTACT:Alex Morganroth, Senior Planner x7219 SUBJECT:Fee Waiver Request – Habitat for Humanity South King County La Fortuna Phase II Townhomes ISSUE: Should the City waive certain development and impact fees for the Habitat for Humanity South King County (HFHSKC) La Fortuna Phase II project? RECOMMENDATION: Approve a 100-percent waiver of the eligible development fees and 80-percent of the transportation, parks, and fire impact fees as provided in Renton Municipal Code (RMC) 4-1-210B.4 for the HFHSKC La Fortuna Phase II development with the City contributing $18,494.40 or 20-percent of the outstanding balance for the remaining transportation, parks, and fire impact fees. BACKGROUND SUMMARY: HFHSKC has requested a waiver of development and impact fees for the La Fortuna Phase II units. Due to an error by the applicant, HFHSKC, the subject waiver was not requested at the time of land use submittal as required by code. Therefore a portion of the fees have already been paid and will need to be refunded if the waiver is approved. The project includes 12 new owner-occupied townhomes at 12710-12748 SE 173rd St and 17210-17324 127th Pl SE in Renton, WA. The subject site is 4.5 acres in size and is located within the Residential -10 du/ac (R-10) zoning designation. A total of 23 owner- occupied townhome units in four separate buildings have already been constructed on the site under separate permits. King County processed the requisite land use entitlements for the existing 23 units prior to the parcel’s annexation into the City of Renton in March of 2008. Building permits and Certificates of Occupancy for the four existing buildings were processed and issued by the City of Renton after annexation. At AGENDA ITEM #6. e) Ruth Perez, Council President Page 2 of 3 April 6, 2020 project completion the site will have a total of 35 units (23 existing units + 12 new units). The area of the site where the new units are proposed is owned by HFHSKC. Once complete, all 12 units will be held in the Habitat Land Trust and administered by HFHSKC. HFHSKC will sell the individual units to the buyer and retain ownership of the land. An individual ground lease will be executed with the homebuyer at the time of sale. In order to ensure the units will be permanently affordable, the ground lease gives HFHSKC the first option to purchase the home if the homeowner sells the property using a sales price calculated by a formula embedded in the ground lease document (in-lieu of the market value). The La Fortuna Phase II project would be priced for homeowners below the 80% area medium income range. The “Waived Fees – Affordable Owner-Occupied Housing Incentive,” RMC 4-1-210B is intended to encourage new affordable owner-occupied housing in the City by waiving certain development and mitigation fees for eligible affordable “For Sale” housing projects. As such, HFHSKC has requested that the following permit fees, impact fees, and system development charges be waived for the La Fortuna development project: Building permit and plan review fees; Transportation and Parks impact fees; Fire impact fees (pending the authorized inter-local agreement w/ RRFA) o Per State Law, 80-percent of the transportation, parks, and fire impact fees would be waived and 20-percent of the fees would be paid by the City into the impact fee accounts. Civil plan review and inspection fees Surface Water system development charges; and Technology surcharge fees The estimated total fees requested to be waived for the HFHSKC La Fortuna Phase II project are $169,721. If approved, these waived fees would represent an estimated savings of $14,143 per townhome. The City would contribute $19,385 or 20-percent of the total transportation, parks, and fire impact fees into those respective impact fee accounts. The City contribution would be from CED’s existing operational budget. Per RMC 4-1-210B.6, if the fee waiver is approved by City Council, the applicant would be required to submit a restrictive covenant for the property for review and approval by the Community and Economic Development Administrator. The restrictive covenant is required to ensure the affordable housing units are maintained and sold to households at or below eighty percent (80%) of median income in perpetuity. The restrictive covenant must be executed and recorded at the applicant’s expense prior to the issuance of the building permit, unless otherwise approved by City Council. Staff is recommending deferring the execution and recording of the restrictive covenant documents to prior to the issuance of Temporary Certificate of Occupancy (TCO) for the AGENDA ITEM #6. e) Ruth Perez, Council President Page 3 of 3 April 6, 2020 first building. The property will be going through the subdivision process and recording the restrictive covenants with each of the new lots would be most effective in ensuring the covenants are tied to the corresponding properties. Recording of the subdivision and covenants would occur prior to TCO. Per RMC 4-1-210B.7, if the fee waiver is approved by City Council, the applicant is required to enter into a contract with the City that is approved by City Council regarding the terms and conditions of the project as it relates to the affordable owner-occupied housing incentive. As the contract would be executed and recorded later in the development process and prior to TCO similar to the above-referenced restrictive covenant, staff recommends the City Council authorize the Mayor to enter into the contract with the applicant to effectuate the fee waiver. CONCLUSION: The HFHSKC La Fortuna Phase II project, which would add 12 new units of affordable owner-occupied housing to the existing La Fortuna development, meets the eligibility criteria for the waived fees as identified in RMC 4-1-210B.3. The fee waiver will assist in providing new affordable owner-occupied housing and supports the City’s ongoing efforts to provide owner-occupied housing in a variety of neighborhoods. AGENDA ITEM #6. e) Habitat for Humanity South King County (HFHSKC) –La Fortuna Phase II Waived Fees Building Permit Fee $21,716 Building Permit Plan Review Fee $14,115 Surface Water System Development Charge $17,215 Public Works/Civil Plan Review and Inspection Fees $17,104 Technology Surcharge Fee $2,643 Fire Impact Fee (pending the authorized inter-local agreement with RRFA) @$964.53 per unit $11,574 Transportation Impact Fee @$4,064.56 per unit $48,775 Parks Impact Fee @$3,048 per unit $36,579 Estimated Waived Fees $169,721 AGENDA ITEM #6. e) 1  CITY OF RENTON, WASHINGTON    RESOLUTION NO. _______    A RESOLUTION OFF THE CITY OF RENTON, WASHINGTON, WAIVING CERTAIN  DEVELOPMENT AND IMPACT FEES FOR THE HABITAT FOR HUMANITY SOUTH  KING COUNTY LA FORTUNA PHASE II PROJECT.     WHEREAS, Habitat for Humanity South King County received administrative site plan  approval LUA19‐000263 on December 19, 2019 for the La Fortuna Phase II development located  in the City of Renton’s Residential‐10 du/ac (R‐10) Zone at 12710‐12748 SE 173rd St and 17210‐ 17324 127th Pl SE that would provide 12 affordable owner‐occupied housing units within three  new multifamily buildings; and   WHEREAS, Habitat for Humanity South King County submitted a written request dated  March 5, 2020 (attached as Exhibit A and incorporated by this reference) to the Department of  Community and Economic Development for a 100 percent fee waiver of building permit fees;  building permit plan review fees; surface water system development charges; Public Works plan  review and inspection fees; fire, transportation, and parks mitigation impact fees; and technology  surcharge fees (the “Request”); and   WHEREAS, the Request was not made at the time of land use application pursuant to RMC  4‐1‐210.B.5; and  WHEREAS, Habitat for Humanity South King County acknowledges their failure to apply  for the waiver at the time of land use application due to a series of staffing changes; and   WHEREAS, in the Request, Habitat for Humanity South King County specified that the La  Fortuna Phase II project is planned to consist of entirely new construction of 12 housing units,  AGENDA ITEM #6. e) RESOLUTION NO. _______  2  and 100 percent of the housing unit will be reserved for affordable housing as defined by RMC 4‐ 1‐210; and  WHEREAS, pursuant to the City’s affordable owner‐occupied housing incentive RMC 4‐1‐ 210.B, the City Council may waive the fees enumerated in that code section for new affordable  owner‐occupied housing projects in the City that meet the eligibility requirements set forth  therein; and   WHEREAS, the total estimated development and impact fees for the La Fortuna Phase II  project total $169,721.00; and   WHEREAS, as a condition of granting a full waiver of fees, RCW 82.02.060 requires the  City to pay 20 percent ($19,385.62) of the waived impact fees from public funds other than  impact fee accounts;    NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO  RESOLVE AS FOLLOWS:  SECTION I. Habitat for Humanity South King County and its proposed La Fortuna Phase  II project at 12710‐12748 SE 173rd St and 17210‐17324 127th Pl SE meet the eligibility criteria  for fee waivers identified in RMC 4‐1‐210.B.   SECTION II. The City Council finds that the staffing challenges described by Habitat for  Humanity South King County resulted in a failure to submit the fee waiver request at the time of  land use application but further finds that those challenges constitute an excusable reason for  the late request, and fully accepts the subject fee waiver request.  AGENDA ITEM #6. e) RESOLUTION NO. _______  3  SECTION III. The City Council, contingent upon compliance with the terms of SECTION  IV of this resolution, fully waives the following fees for the Habitat for Humanity South King  County La Fortuna Phase II project:  A.  Building permit fees;  B.  Building permit plan review fees;  C.  Surface water system development charges;  D.  Public Works plan review and inspection fees;  E.  Transportation and parks impact mitigation fees;  F.  Fire impact mitigation fees;  G. Civil plan review and inspection fees; and  H. Technology surcharge fees.  SECTION IV. To be eligible for this waiver, Habitat for Humanity South King County shall  comply with and continue to remain in full compliance with all applicable requirements of RMC  4‐1‐210.B and RCW 82.02.060, including, but not limited to, recording the restrictive covenant  required by RMC 4‐1‐210.B.6 prior to the issuance of a temporary certificate of occupancy for  any portion of the project.    SECTION V.  Pursuant to RCW 82.02.060, the City will pay 20 percent of the waived  impact fees from non‐impact fee accounts, as such funds may be allocated by separate budget  amendment, if needed.      AGENDA ITEM #6. e) RESOLUTION NO. _______  4  PASSED BY THE CITY COUNCIL this ______ day of _____________________, 2020.        ______________________________  Jason A. Seth, City Clerk      APPROVED BY THE MAYOR this ______ day of _____________________, 2020.        ______________________________   Armondo Pavone, Mayor           Approved as to form:      ______________________________  Shane Moloney, City Attorney    RES.1842:3/30/2020   AGENDA ITEM #6. e) RESOLUTION NO. _______  5          EXHIBIT A  THE HABITAT FOR HUMANITY SOUTH KING COUNTY   REQUEST FOR WAIVER OF CERTAIN DEVELOPMENT AND  IMPACT FEES FOR THE LA FORTUNA PHASE II PROJECT  AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org 3/5/2020 Chip Vincent Administrator of the Department of Community & Economic Development Renton City Hall 1055 South Grady Way Renton, WA 98057 RE: Habitat for Humanity - Request to Waive Development and Mitigation Fees Dear Mr. Vincent, On behalf of Habitat for Humanity Seattle-King County (HFHSKC) I wish to submit this application to waive applicable development and mitigation fees at our development site 12710-12748 SE 173rd ST, 17210-17324 127th Place SE, in Renton WA. This development consists of 12 affordable for- sale townhomes across 3 buildings (4 units per building). 6 units are 4 bed/2 bath and 6 units are 3 bed/1.5 bath. 1 unit will have a fully accessible first floor. We estimate that the project will serve 60 people (project plans enclosed for your review). Further, I wish to request a waiver of the application deadline for the fee waiver application. Due to a series of staffing changes at our office the deadline for submission at Land-Use Application was missed. This oversight was our responsibility and we would greatly appreciate any flexibility and understanding the city might offer on this project. As the fees are quite substantial (fee schedule enclosed), they present a very big challenge to our ability to provide these units at affordable prices. I believe our development meets the eligibility criteria for fee waivers in the Renton Municipal Code for the following reasons:  The project includes a total of 12 units; a minimum of 10 units is required.  All 12 units will be owner-occupied “for sale” affordable housing.  All 12 units will be restricted to buyers who make 80% or less of the Area Median Income adjusted for household size adjusted for King County as reported by the United States Department of Housing and Urban Development (HUD).  All 12 units will be held in the Habitat Land Trust (HLT) and administered by HFHSKC. The HLT program ensures permanent affordability of the units for future low income home buyers. HFHSKC will sell the improvement (house) to the buyer and retain ownership of the land. An individual ground lease is executed with the HFHSKC homebuyer at the time of sale. If the homeowner sells the property in the future, the ground lease gives HFHSKC the first option to purchase the home using a sales price calculated by a formula embedded in the ground lease document, not the real estate market. This allows HFHSKC to address the threat of displacement that our most vulnerable families face as the cost of living continues to rise in King County.  Habitat for Humanity Seattle-King County has a demonstrated history of providing affordable housing in King County with over 350 units in our portfolio (abridged project history enclosed). AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org  Our preferred mortgage lender is HomeSight. HomeSight currently reviews all homeowner applications for compliance with affordability standards and adherence to our Land Trust Model. I would propose HomeSight as the third-party entity to provide annual compliance documentation to the City of Renton. We have made excellent progress with this development and are on schedule to break ground in the summer of 2020. The current schedule is as follows:  Land Use Application submitted 10/15/19  Civil Permit submitted 2/13/20  Building Permit submitted 2/24/20  Civil and infrastructure work to begin 6/1/20  Building work to begin Fall 2020  Homes to be sold Spring 2022 Thank you for your consideration of this application. If you have any questions I will be happy to give further details on any part of the development. Thank you, Patrick Sullivan Director of Real Estate Development Habitat for Humanity Seattle-King County 560 Naches Ave SW, Suite 110, Renton, WA 98057 patrick.sullivan@habitatskc.org Cell: (347) 260-6640 Office: (206) 855-5004 Enclosed: Project Development Plan Sheets Impact Fee Schedule Project Experience AGENDA ITEM #6. e) AGENDA ITEM #6. e) AGENDA ITEM #6. e) AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org I. Past Performance HFHSKC is a non-profit that builds strength, stability, and self-reliance through shelter – moving individuals and families out of vulnerable housing and into homeownership. With a proven model of creating and supporting homeownership for low-income households in King County, HFHSKC prepares families for financial success and stability through programs that help them purchase, preserve, and stay in affordable homes. HFHSKC brings a unique expertise and track record of success around:  Building quality new homes at an affordable price point for low income buyers.  Utilizing an internal land trust model which keeps the units permanently affordable.  Recruiting, screening, and identifying qualified homebuyers who are financially responsible and able to succeed at homeownership but are otherwise unable to afford a better living situation given the high cost of housing in the region.  Preparing low income homebuyers for success through financial education courses, homeownership education, peer mentorship, referrals to outside resources, and ongoing support before, during, and after home purchase. As the largest Habitat for Humanity affiliate in Washington State and one of the top ten affiliates in the nation, HFHSKC is uniquely positioned to address the impact of the Seattle area’s housing affordability crisis on low income families. HFHSKC serves approximately 2,300 low income King County residents each year through homeownership, education, repair services, referrals, and community building. HFHSKC has built, repaired, or renovated over 550 homes in King County over the last 30 years, sheltering 1,808 people, including 1,009 children, with the help of tens of thousands of volunteers. Last year alone, over 2,194 volunteers were engaged contributing a total of 26,335 hours, including 188 total groups consisting of 94 businesses, 44 civic/veterans, 27 faith based, and 23 schools. Relevant Projects: Sammamish Cottages: Sammamish, WA Total Units in Development: 10 Timing: 2016 - 2019 Megan’s Meadow: Pacific. WA Total Units in Development: 9 Timing: 2016 - 2019 Rainier Vista: Seattle, WA Total Units in Development: 23 Timing: 2008 - 2014 Patterson Park: Redmond, WA Total Units in Development: 24 Timing: 2002 - 2010 Overlake: Bellevue, WA Total Units in Development: 10 Timing: 1994 - 1998 AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Project: Sammamish Cottages Address: 22802 SE 21st St, Sammamish, WA 98075 Jurisdiction: City of Sammamish Construction: 2016-2019 Number of units: 10 Type of units: Cottages; 10 single family homes with shared parking. HFHSKC received donated land from the City of Sammamish. All required development tasks and activities were managed through HFHSKC including: preparation and submittal of the binding site plan, early clear and grade permit, building permits, and construction work. A combination of professional subcontractors and volunteers lead by paid HFHSKC construction managers and AmeriCorps volunteers were utilized to complete the project. All units have been sold to families with low incomes. AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Project Name: Megan’s Meadow Location: Pacific Address: 121 Skinner Rd; Pacific, WA 98047 Jurisdiction: City of Pacific Construction: 2016-2019 Number of units: 9 Type of units: Single family homes. HFHSKC purchased the site as vacant land from a developer. All required development tasks and activities were managed through HFHSKC including: preparation and submittal of the binding site plan, early clear and grade permit, building permits, and construction work. A combination of professional subcontractors and volunteers lead by paid HFHSKC construction managers and AmeriCorps volunteers were utilized to complete the project. All units have been sold to families with low incomes. AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Project Name: Rainier Vista Address: 4051 MLK Way S; Seattle, WA 98108 Jurisdiction: City of Seattle/Rainier Vista Neighborhood-within Seattle Housing Authority’s (SHA) mixed use Rainier Vista development. Construction: 2008-2014 Number of units: 23 Type of units: Multi family; 2 story townhouses; 6 buildings. All required development tasks and activities were managed through HFHSKC including: preparation and submittal of the binding site plan, early clear and grade permit, building permits, and construction work. A combination of professional subcontractors and volunteers lead by paid HFHSKC construction managers and AmeriCorps volunteers were utilized to complete the project. All units have been sold to families with low incomes. AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Project Name: Patterson Park Address: 18280 NE 98th Pl #C2; Redmond, WA 98052 Jurisdiction: City of Redmond Construction: 2002-2010 Number of units: 24 Type of units: Multi Family Townhouses; 4 buildings. All required development tasks and activities were managed through HFHSKC including: preparation and submittal of the binding site plan, early clear and grade permit, building permits, and construction work. A combination of professional subcontractors and volunteers lead by paid HFHSKC construction managers and AmeriCorps volunteers were utilized to complete the project. All units have been sold to families with low incomes. AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Project Name: Overlake Address: 15771 Northup Way; Bellevue, WA 98008 Jurisdiction: City of Bellevue Construction: 1994-1998 Number of units: 10 Type of units: Multi Family; 5 duplex buildings, 2 story townhouses. All required development tasks and activities were managed through HFHSKC including: preparation and submittal of the binding site plan, early clear and grade permit, building permits, and construction work. A combination of professional subcontractors and volunteers lead by paid HFHSKC construction managers and AmeriCorps volunteers were utilized to complete the project. All units have been sold to families with low incomes. AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Portfolio of Communities Name Total Units Project Timeline Location Building Type 1. New construction 350 Coal Creek Terrace 12 1999 - 2003 Newcastle Multi-family High Point 20 2006 - 2010 Seattle Single/duplex/triplex Judkins Park 1 2006 - 2008 Seattle Single-family Kent 3 2003 - 2004 Kent Single-family Koinonia Ridge 50 2000 - 2010 Snoqualmie Single-family LaFortuna 35 2010 - 2022 Renton Multi-family Lake City 16 2019-2021 Lake City Multi-family Lexington Place 4 1996 - 2000 Seattle Single-family Loyal Heights 8 Target 2020-2021 Seattle Duplex Magnolia Village 10 2008 - 2012 Issaquah Multi-family Megan's Meadow 9 2016 - 2019 Pacific Single-family New Holly 28 2001 - 2005 Seattle Duplex Othello 15 2004 - 2007 Seattle Single/ Multi-family Overlake 10 1997 - 1999 Bellevue Multi-family Pacific-2nd Ave 3 2019-2020 Pacific Single-family Patterson Park 24 2002 - 2010 Redmond Multi-family Rainier Vista 23 2008 - 2014 Seattle Multi-family Roxbury 10 2002 - 2004 Seattle Single-family Sammamish 10 2016 - 2019 Sammamish Single-family Shoreline 3 1998 - 2000 Shoreline Single-family Single Site 30 1999 - 2015 King County Single-family South Park 16 1991 - 1999 Seattle Single-family Walker Townhomes 8 1994 - 1997 Seattle Duplex and 6-plex Westway 2 2004 -2005 Federal Way Single-family 2. Buyback/ Recycle 59 Coal Creek 6 Ongoing Newcastle Multi-family High Point 3 Ongoing Seattle Multi-family Koinonia Ridge 22 Ongoing Snoqualmie Single-family New Holly 3 Ongoing Seattle Duplex Kent 1 Ongoing Kent Single-family LaFortuna 1 Ongoing Renton Multi-family Magnolia Village 1 Ongoing Issaquah Multi-family Othello 2 Ongoing Seattle Single/ Multi-family Overlake 5 Ongoing Bellevue Multi-family Patterson Park 5 Ongoing Redmond Multi-family AGENDA ITEM #6. e) 560 Naches Ave. SW, Suite 110, Renton, WA 98057 Phone/Fax 206-453-2950 habitatskc.org Name Total Units Project Timeline Location Building Type Rainier Vista 1 Ongoing Seattle Multi-family Roxbury 2 Ongoing Seattle Single-family Single Site 2 Ongoing King County Single-family South Park 4 Ongoing Seattle Single-family Westway 1 Ongoing Federal Way Single-family attached 3. Rehab 35 Judkins Park 3 2006-2008 Seattle Single-family home Single Site 14 1987 - 2018 King County Single-family home South Park 2 1993-1994 Seattle Single-family home Westway 16 2010 - 2016 Federal Way Single-family home 4. Manufactured Home 3 The Vue 2 2008-2011 Seattle Single-family home Single Site 1 2013 - 2014 Bothell Single-family home 5. Critical Repairs 206 Federal Way 63 2005 - Present Renton 21 2016 – Present South Seattle 42 2012 – Present White Center 49 2012 - Present King County 31 2012 - Present AGENDA ITEM #6. e) AB - 2626 City Council Regular Meeting - 06 Apr 2020 SUBJECT/TITLE: Willowcrest Townhomes – Multi-Family Housing Property Tax Exemption Agreement RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Mark Santos-Johnson, Community Development & Housing Manager EXT.: 6584 FISCAL IMPACT SUMMARY: N/A. The Multi-Family Housing Property Tax Exemption is treated by the King County Assessor simi lar to other exempt properties. The City’s levy rate is increased when properties are exempt, but the total property tax revenue remains the same for the City (i.e., since the tax liability is shifted to the non -exempt property owners, there is no lost City property tax revenue). For property taxpayers, the increased levy rate means that the non-exempt property owners pay a higher property tax as exempt properties are excluded from the tax roll but not the tax liability. SUMMARY OF ACTION: On January 17, 2020, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application for the Willowcrest Townhomes, a 12-unit affordable homeownership project in the Sunset Area designated residential targeted area. As provided for in RMC 4-1-220, (1) the CED Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application; and, (2) if approved, the applicant must enter into an agreement approved by the Council that addresses the terms a nd conditions for the Willowcrest Townhomes project to receive a partial property tax exemption for 12 years upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Willowcrest Townhomes project. The project is an integral part of the Sunset Area Transformation Plan and includes 12 permanently affordable 3- and 4-bedroom townhomes for ownership, priced affordably for those who make less than 80% of the King County area median income. The project is scheduled to start construction in April 2020 and be completed in May 2021. EXHIBITS: A. Issue Paper B. Willowcrest Townhomes “Groundbreaking” material from November 2019 C. Multi-Family Housing Property Tax Exemption Agreement for the Willowcrest Townhomes STAFF RECOMMENDATION: Staff recommends that the Council: (1) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Willowcrest Townhomes affordable homeowne rship project to receive a partial property tax exemption for 12 years upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. AGENDA ITEM #6. f) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: March 27, 2020 TO: Ruth Perez, Council President Members of Renton City Council VIA: Armondo Pavone, Mayor FROM: C. E. “Chip” Vincent, CED Administrator STAFF CONTACT: Mark Santos -Johnson, Community Development & Housing Manager (ext. 6584) SUBJECT: Willowcrest Townhomes – Multi-Family Housing Property Tax Exemption Agreement ISSUE: Should the City Council approve the Multi -Family Housing Property Tax Exemption Agreement for the Willowcrest Townhomes project and authorize the Mayor to execute the agreement? RECOMMENDATION: Staff recommends that the Council: (1) approve the Multi -Family Housing Property Tax Exemption Agreement that address es the terms and conditions for the Willowcrest Townhomes project to receive a partial property tax exemption for 12 years upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. BACKGROUND SUMMARY: On January 17, 2020, the City received a Multi -Family Housing Property Tax Exemption (“Exemption”) application from Homestead Community Land Trust for the Willowcrest Townhomes project in the Sunset Area designated residential targeted area. As provided for in RMC 4-1-220: (1) 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, (2) if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Willowcrest Townhomes project to receive a partial property tax exemption for 12 years upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Willowcrest Townhomes 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 #6. f) Ruth Perez, Council President Page 2 of 3 March 27, 2020 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. Willowcrest Townhomes is an affordable homeownership project that is part of the Sunset Area Transformation Plan. The project is located on Edmonds Avenue NE between NE Sunset Boulevard and NE 12th Street, Renton, Washington (behind the Renton Housing Authority’s Glennwood Townhomes affordable housing project ). The Willowcrest Townhomes project will be built on land donated by the Renton Housing Authority and valued at approximately $800,000. The project includes 12 permanently affordable 3 - and 4-bedroom townhomes for ownership, priced affordably for thos e who make less than 80% of the King County area median income (e.g., $50,400 for a one-person household and $72,000 for a four-person household in 2019). Through energy-efficient design and quality construction, Homestead will create homes that are economical to own while minimizing their impact on the environment. The project is scheduled to start construction in April 2020 and be completed in May 2021. (Please see the attached Willowcrest Townhomes “Groundbreaking” material from November 2019, includi ng a site plan, rendering, and additional project and community land trust information.) Since 100% of the units will be set aside as affordable homeownership for households at or below 80% of the King County area median income, the project is eligible fo r the 12-year Exemption. The property tax savings will reduce the housing expense s for the low-income homebuyers and allow the funds to be available to capitalize a replacement reserve that will help protect the homeowners from onerous increases in the ho meowners association (HOA) fees for property maintenance and systems replacement. This safety net will help stabilize the ongoing housing expense and ensure the best possible environment for the homeowners to achieve housing security and maintain the long -term affordability that’s key to Homestead’s land trust model. The estimated potential property tax savings related to the Exemption is approximately $40,604 per year ($487,250 for the twelve-year period) for the Willowcrest Townhomes 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 avai lable if the project provides at least 20% of the units as affordable housing). AGENDA ITEM #6. f) Ruth Perez, Council President Page 3 of 3 March 27, 2020 project. This equates to a potential property tax savings of approximately $3,384 per year per housing unit ($40,604 per housing unit for the 12-year 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 Village (CV) zone as part of the Sunset Area designated residential targeted area;  100% of the project is set-aside for affordable homeownership for households at or below 80% of the King County area median income ; and  The project consists of 12 affordable homeownership dwelling units, more than the minimum number of 10 dwelling units. The City received an Exemption application for the Willowcrest Townhomes project on January 17, 2020. As provided for in RMC 4-1-220F, (1) the CED Administrator needs to approve or deny the Exemption appli cation within 90 days of receipt; and, (2) if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Willowcrest Townhomes project to receive a partial property tax exemption upon comple tion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Willowcrest Townhomes project. (Please see the proposed Exemption Agreement for the Willowcrest Townhomes project.) CO NCLUSION: Renton’s Multi -Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including the Sunset Area. The Willowcrest Townhomes project will provide 12 units of affordable homeownership and approximately $5 million in investment in the Sunset Area. The project is an integral part of the Sunset Area Transformation Plan and furthers the City’s 2020-2025 Business Plan Goals. cc: Robert Harrison, CAO Jason Seth, City Clerk Jan Hawn, Administrative Services Administrator Mike Stenhouse, Ron Straka, & Jim Seitz, Acting Public Works Administrator Kelly Beymer, Community Services Administrator Cliff Long, Economic Development Director Hannah Bahnmiller, Housing Programs Manager Enc. (1) Willowcrest Townhomes “Groundbreaking” material from November 2019, including a site plan, rendering, and additional project and community land trust information (2) Multi -Family Housing Property Tax Exemption Agreement for the Willowcr est Townhomes AGENDA ITEM #6. f) Wıllowcrest Willowcrest, developed by Homestead Community Land Trust, is the first multi-unit homeownership project in King County that is both affordable to low- and moderate-income households and designed to reduce utilities costs and climate impacts through ultra-high energy efficiency and the elimination of fossil fuels. Built on land provided by the Renton Housing Authority in the Sunset neighborhood in northeast Renton, the 12 three- and four-bedroom townhomes will achieve net zero energy usage through highly energy-efficient systems and construction, and the use of solar panels for onsite energy generation. Willowcrest homes will be affordable to households with incomes considered to be low- or moderately- low by the U.S. Department of Housing and Urban Development for the King County area. Through one-time investments that subsidize the initial price of the homes, and through partnerships with homebuyers, Homestead will keep Willowcrest homes affordable to all subsequent income-qualified homebuyers permanently. As a result, these 12 homes will give up to 80 households over the next 50 years the social, health and financial benefits of an affordable, fixed housing payment in a quality home. A sustainable community land trust neighborhood Willowcrest will incorporate these sustainability features: n Solar panels to achieve net zero energy n Recycled content fiber cement siding with low/ no VOC paint n Insulated R-30 2x8 Exterior Walls - 43% ener- gy savings beyond Washington State Energy Code n 3-zone ductless mini-split heating/cooling sys- tem - 25% energy savings beyond Washington State Energy Code n High-efficiency heat pump water heater to minimize operational cost over the life of the home n At least 75% of construction waste recycled and diverted from the landfill n Thermal pane windows with low-e glazing on both interior and exterior panes to reduce heat loss in winter and thermal heat gain in summer n Efficient routing of plumbing and insulated hot water pipes to reduce energy wasted due to heat loss n Low-flow plumbing toilets and fixtures to re- duce water waste n Cork-based plank and linoleum flooring that is PVC free and recyclable n Quartz countertops made from recycled stone cutting waste materials Additional information, contact: Kathleen Hosfeld, Executive Director, 206. 323.1227 Ext. 113 Eric Pravitz, Director of Real Estate Development, 206.323.1227 Ext. 111 Funding for environmental and energy-efficiency features on the Willowcrest townhomes comes from Edwards Mother Earth Foundation and the City of Renton. AGENDA ITEM #6. f) AGENDA ITEM #6. f) ____________________________________________________________________________________ 412 Maynard Avenue South, Ste. 201. • Seattle, WA 98104 • (206) 323-1227 • info@HomesteadCLT.org www.HomesteadCLT.org Willowcrest Townhomes Homestead CLT is immensely grateful for the diverse partners and stakeholders who have contributed to this project. Willowcrest, a sustainable community land trust neighborhood, is made possible through the support of these partners: Funding • King County – Housing Finance funds • King County Council -- Waterworks Grant • Washington State Housing Trust Fund award • City of Renton – Greenbuilding grant • JP Morgan Chase Foundation grant • Edwards Mother Earth Foundation grant • Renton Housing Authority – Land contribution • Community Frameworks – SHOP award Development Team • Third Place Design Cooperative Architect • O’Brien 360 • Edge Community Builders • Coterra Engineering • Homestead Board of Trustees, Homestead Real Estate Development Committee Members Financing • Heritage Bank Other Advocates and Individuals • Mayor Denis Law, City of Renton • Renton City Council and Council staff • Mark Gropper, Renton Housing Authority • Renton Housing Authority Board and staff • Catherine Martin, JP Morgan • Mark Santos Johnson, City of Renton • Matt Herrera, City of Renton • Regan Dunn, King County Council • Marty Kooistra, Loren Tierney, Housing Development Consortium • Doug Levy, working with the City of Renton • Patti Southard, Kathleen Petrie, James Neely; King County Green Tools • Philippa Nye, Ally Community Development • Boyd Pickrell, Homestead CLT • Rand Redlin, Homestead CLT • Schemata Workshop AGENDA ITEM #6. f) BUILDING A 4 UNIT TOWNHOME BUILDING B 4 UNIT TOWNHOME BUILDING C 4 UNIT TOWNHOMEENTRYENTRYENTRY ENTRYENTRY ENTRY ENTRY ENTRY ENTRY ENTRY ENTRY ENTRY FUTURE FIRE ACCESS AND UTILITY EASEMENT ASPHALT DRIVEPEDESTRIAN PATH FLUSH WITH DRIVESIDEWALKPEDESTRIAN PATHSIDEW A L K SIDEW A L K SIDEWALKSIDEWALKSIDEWALKSIDEWALKDRIVEAPRONDRIVE APRO N DRIVE APRO N UTILITY ACCESS ROADPARKINGPARKI N G ASPHA L T D R I V E PEDES T R I A N P A T H PEDES T R I A N P A T H PEDESTRIAN PATH FLUS H W I T H D R I V E S EXISTING DRIVE REVISEDPARKING REFUSE & RECYCLING SHARED USEOPEN SPACE FLAGPOLE BIKE R A C K SIDEW A L K EXISTINGBUILDING EXISTINGBUILDING GLENWOOD AVE NEEDMONDS AVE NEFUTURE PLANTER STRIPFUTURE SIDEWALKUTILITY EASEMENT FUTURE TOWNHOME BUILDINGS FUTURE RETAINING WALL YARD YARD YARD YARDYARD YARDYARDYARDYARD YARD YARD YARD RHA FUTURE TOWNHOME BUILDINGS HOMESTEAD WILLOWCREST TOWNHOMES RHA GLENWOOD TOWNHOMES AGENDA ITEM #6. f) OUR MISSION Homestead Community Land Trust puts the financial and social benefits of affordable homeownership within reach of the everyday heroes of King County who are priced out of our high-cost housing market. Our mission is to expand permanently affordable homeownership for low- and moderate-income people as a means to create thriving, equitable, and inclusive communities. Homestead builds new homes and rehabs existing homes, raising funds to price these homes affordably for first-time homebuyers who make less than 80% of area median income. We keep homes affordable in partnership with buyers who agree to a resale formula that allows them to build equity while also keeping the home affordable to the next buyer. BUILDING EQUITY AND OPPORTUNITY With over 25 years in service to the Puget Sound area, Homestead combines housing development with counseling, education, and other supportive services to create a growing inventory of permanently affordable homes and a community of successful homeowners. With your support we provide the King County residents who keep our community vital -- including mail carriers, police officers, grocery clerks, social workers and teachers -- the opportunity to gain stability for their families, safely accrue equity, and put down roots in their communities. HOW IT WORKS Homestead secures public (tax) and private grants and donations to subsidize the price of homes so that they are affordable to low- or moderate-income first-time homebuyers. The buyer pays for and owns the home (structure and improvements) on the land. Homestead homeowner-members own the land under their homes collectively through Homestead. Homeowners lease the land for a small monthly fee. Buyers accrue 1.5% equity in their home compounded annually. They do not have to sell their home if their income increases after purchase. Homeowners can own as long as they wish; but when they sell it’s at a formula resale price that is affordable to the next low-income buyer. Through this system, we give affordability a permanent address in our communities, and give vital community members have a chance to build wealth and thrive in place. In the last 25 years, the median price of a home in King County has risen from $150,000 to more than $625,000 – an increase of more than 300% that puts owning a home out of reach for many. But with your help, Homestead has made over 215 homes, resting on 14 acres of land, permanently affordable for hard-working, modest-income neighbors in our communities. Homes that will serve up to 1,400 families over the next 50 years. Those of us who know where we’ll be sleeping next month and where our kids will go to school next year, who can dream and plan and commit far into the future because no one is going to jack up our rent and push us out, we have a responsibility to push that door open for others. Homestead did that for me…I’m proud to be a Homestead homeowner.” – Mijo Lee, Homestead Homeowner $ Total Homes 215 Total Resales 42 Total Families Served256 TOTAL HOUSEHOLDS SERVED Homestead C o m m u n i t y L a n d T r u s t WE PUT THE DREAM OF HOMEOWNERSHIP WITHIN REACH INTRODUCING HOMESTEAD AGENDA ITEM #6. f) EVERY HOME MADE PERMANENTLY AFFORDABLE… …Gives up to 7 households over 50 years a safe, healthy home that also allows them to build wealth 412 Maynard Ave. S. Suite 201 Seattle, WA 98104 206.323.1227 HomesteadCLT.org Homestead is a 501c3 non-profit corporation. Our EIN Number is 91-1565651 Copyright 2018/2019 Homestead Community Land Trust In 2007 Mijo Lee was a single mom with no child support, drowning in student debt, and working for a nonprofit. When her friend Glenn Harris suggested she buy a home, she thought he was crazy. But through Homestead, that crazy dream became a reality. She bought a three-bedroom home in South East Seattle. As a result, she formed a supportive community in which to raise her son. “I am an organizer. That’s my approach to social change, and that’s my approach to parenting,” Mijo says. “I’ve been able to build this amazing community around us, a chosen family that has taken care of us.” That stability has also enabled Mijo to pour her heart into social justice work as the Executive Director of the Social Justice Fund, a nonprofit that engages community philanthropy in four states. WE ARE GIVING AFFORDABLE HOMEOWNERSHIP A PERMANENT ADDRESS BECAUSE HOMEOWNERSHIP CHANGES EVERYTHING FOR PEOPLE LIKE MIJO A GROWING COMMUNITY ASSET Homestead Community Land Trust stewards a portfolio of 215 homes that have so far served 256 families, of which 55% are people of color. Because each home may serve up to seven families, over the next 50 years these homes will put the dream of homeownership and the ability to build equity safely within reach of 1,498 families. MEMBERSHIP Homestead Community Land Trust is a democratically governed membership organization. All of our homeowners are members who have a voice in organizational decision-making and are represented on our Board of Delegates. WORKING WITH COMMUNITIES As a regional expert in affordable homeownership and stewardship for permanent affordability, Homestead Community Land Trust is a resource to neighborhood and community leaders who live in places at risk of displacement and gentrification. Our approach to equitable development includes offering technical assistance, contract stewardship and developer partnerships to help vulnerable neighborhoods prevent displacement, increase community ownership and preserve affordability. AGENDA ITEM #6. f) I have a mortgage payment that is low and affordable. I’m starting a business. I live in a community that I grew up in. If I didn’t have Homestead Community Land Trust, I wouldn’t be able to do any of that.” – Frank Video, Homestead Homeowner Homeowner Diversity 10% 4% 21% 21% Asian Black or African American Multiracial Other 45% White Rates of Homeownership 55%35% Minority OwnershipHomestead Homes Minority Ownership All King County Homes WE PUT HOMEOWNERSHIP WITHIN REACH Homestead Community Land Trust puts the financial and social benefits of affordable homeownership within reach of the everyday heroes of King County shut out of our high-cost housing market. Our program serves low- and moderate income buyers whose only other alternative is renting. The average price of homes in our program is below $200,000; our owners have mortgage payments as low as $1,200 for a two bedroom home (median rent in King County for a two bedroom home is $1,895). WE PREVENT DISPLACEMENT Our current portfolio in Seattle is concentrated in areas designated high risk for displacement in the Equity 2035 Analysis completed by the City of Seattle. Each of the homes in our portfolio will stay affordable resale after resale, giving low- and moderate-income households the opportunity to live and thrive in the neighborhoods where they have connections and history. Our Community Preference policies make it possible for those who have already been displaced or who are at risk of displacement to have the first opportunity to purchase homes we offer for sale. WE SERVE HOUSEHOLDS NOT SERVED BY AFFORDABLE RENTAL HOUSING The majority of our homes are two or more bedrooms, making it possible for us to provide homes for larger and multigenerational households. Our townhome developments are typically three- and four-bedroom homes. Households in our program typically have three or more members. Subsidized rental housing is most often studios, 1 and 2-bedroom homes. Multi-unit homes (higher density) are more than 50% of our portfolio Single Family Detached (47%) 101 Townhomes, Condos (53%) 114 Home Types 5.6% Homes for Larger Households (Homes by Bedroom Size) 36.1% 44.9% 9.7% 2.8%0.5% 1 2 3 4 5 6 We provide homes for families of all sizes. Homestead C o m m u n i t y L a n d T r u s t CREATING STABILITY AND ECONOMIC GROWTH IMPACT AGENDA ITEM #6. f) 412 Maynard Ave. S. Suite 201 Seattle, WA 98104 206.323.1227 HomesteadCLT.org Homestead is a 501c3 non-profit corporation. Our EIN Number is 91-1565651 Copyright 2018/2019 Homestead Community Land Trust 14 Acres of Land Land in Trust WE HELP FAMILIES BUILD WEALTH Through pay-down of principal and formula appreciation of homes, our homeowners accrue about $35,000 of equity for every five years they own their homes. We support homeowners throughout their tenure and through effective stewardship, we have experienced fewer than 1% foreclosure rate. Many of our homeowners “graduate” from community land trust ownership and go on to buy a market-rate home. WE GIVE HOUSEHOLDS STABILITY LEADING TO ECONOMIC MOBILITY Many low and moderate-income families are forced to move due to increasing rental costs, uprooting children from schools and creating distance from supportive social networks. Affordable homeownership allows both homeowners and their children to stabilize in place. As a result, homeowners are able to focus on work and careers, and spend more time with family and friends. Affordable, sustainable homeownership is one of the financial capital indicators of economic mobility (Pew). It is a two-generation solution because it addresses the economic mobility of owners as well as their children. Residing in an owned home has been shown to promote better health outcomes and better academic outcomes for children, both of which are tied by research to economic mobility. COMMUNITY OWNERSHIP Working within the framework of a Just Transition to a New Economy, Homestead shifts economic control of land to community, contributes to democratizing wealth through residential ownership in a member- governed CLT; and drives racial justice and social equity by putting homeownership within reach of people shut out of ownership by our high cost market and the legacy of racial and ethnic discrimination. We have 215 homeowner-member households and are stewarding 14 acres of land on behalf of the community. Renter Owner Owner net worth is 80x that of renter $160,000 $2,000 $Total Homes+ Member Households 215 Total Resales 39 Total Households Served256 Our Community is Growing Low foreclosure rate AGENDA ITEM #6. f) Homestead Community Land Trust preserves and advances access to permanently affordable homeownership as a means to create thriving, equitable and inclusive communities. Partnering with families like yours we have created a portfolio of permanently affordable homes that help owners thrive. In high-cost markets like ours, we believe the best way to ensure that everyone can afford to purchase a home — your family today and other families tomorrow – is to make and keep homes affordable. We use government and private funds to reduce the price of our homes to below market rates so that they are affordable to modest-income people. When you buy a home through Homestead, you become a part of a program that “pays forward” the affordable price to the next buyer. As a Homestead homeowner you agree that: n You or your family will continue to live in the home for as long as you own it. n You will maintain the home in good condition. n When or if you sell your home you’ll sell it to another modest-income buyer for an affordable price. HOW IT WORKS As a Homestead homeowner, you pay for and own the home (the building and improvements) on the land. Homestead continues to own the land under the home and leases it to you for a small monthly fee. You build 1.5% equity in your home compounded annually. You do not have to sell your home if your income increases after purchase. You can even leave it to your heirs in your will. You can own as long as you wish. You agree to sell your home, whenever you decide to sell it, at a formula price that is affordable to the next income-qualified buyer. XXX $ Buyers purchase the structure (home) but not the land. Removing the value of the land from the purchase makes it more affordable. Land is owned collectively through Homestead, a non- profit member organization. A 99-year ground lease or covenant between Homestead and the owner spells out the responsibilities of the owner and the amount of the ground lease fee. A resale formula built into the ground lease keeps homes affordable for subsequent buyers. WE ARE GIVING AFFORDABLE HOMEOWNERSHIP A PERMANENT ADDRESS BECAUSE HOMEOWNERSHIP CHANGES EVERYTHING FOR PEOPLE LIKE ALYSSA Alyssa was a single mother struggling with an unsympathetic landlord who refused to address the household mold that affected the health of her children. Alyssa had significant financial and credit issues. By working with Homestead staff over time, she was able to clean up those issues and in 2015 she bought a single-family home in West Seattle rehabilitated by Homestead Community Land Trust’s Rebuilding Communities project. The home is close to bus lines, schools and grocery stores. Each of her three children has their own bedroom. “We are truly living our lives here.” I never thought I would be someone who could say ‘I own my own house.’ It means the world to me that my kids have a safe home to grow up in. None of this would have happened without Homestead.” – Alyssa Magney, Homestead Homeowner Homestead C o m m u n i t y L a n d T r u s t WE PUT THE DREAM OF HOMEOWNERSHIP WITHIN REACH BUYING A HOME AGENDA ITEM #6. f) BENEFITS OF COMMUNITY LAND TRUST HOMEOWNERSHIP Partnering with Homestead gives you all the benefits of traditional homeownership, plus: Prices you can afford – Homes bought through Homestead cost significantly less than the homes’ market- rate value. Many of our homeowners have mortgage payments close to what they paid in rent. Safe Loans with Reasonable Down Payments – We offer resources for good interest rates on fixed rate loans and you must only put down a minimum of $3,000 or 1% (whichever is higher) to buy your home. You can build equity safely - There are no subprime mortgages, balloon payments, or any funny business. We provide ongoing support before and after you purchase your home. Individuals in Yearly Gross Household Income Monthly Gross Household Income your household (before taxes) cannot be more than: (before taxes) cannot be more than: 1 $61,800 $5,150 2 $70,600 $5,883 3 $77,450 $6,620 4 $88,250 $7,354 5 $95,350 $7,945 6 $102,400 $8,553 7 $109,450 $9,120 8 $116,500 $9,708 INCOME QUALIFICATION To purchase a home through Homestead Community Land Trust you must earn less than 80% of area median income as defined by Housing and Urban Development (HUD), an agency of the federal government. In real dollars this means: FOR ADDITIONAL INFORMATION: Visit our website at www.homesteadclt.org for additional information for prospective homeowners and to apply online. MEMBERSHIP Homestead Community Land Trust is a democratically governed membership organization. As one of our homeowners you have a voice in organizational decision- making. A third of the members of our Board of Delegates are homeowners from our program. We hold two membership meetings each year, an Annual Meeting when we conduct business, and our Annual Picnic where we welcome new homeowners and enjoy life in our great community. Our membership also includes those from our community that support our program and mission. You don’t have to wait to become a homeowner; you can join now to support our work. 412 Maynard Ave. S. Suite 201 Seattle, WA 98104 206.323.1227 HomesteadCLT.org Homestead is a 501c3 non-profit corporation. Our EIN Number is 91-1565651 Copyright 2018/2019 Homestead Community Land Trust DO YOU QUALIFY? YOU MUST BE: n A first-time home buyer n Able to contribute at least 1% of the purchase price or $3,000 down payment n Qualified for a conventional 30-year, fixed rate mortgage from one of our participating lenders Get more information by visiting our Become a Homeowner page at www.homesteadclt.org Updated July 2018 AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 1 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR WILLOWCREST TOWNHOMES THIS AGREEMENT is entered into this ____ day of _______________, 202__ by and between HOMESTEAD COMMUNITY LAND TRUST, a Washington nonprofit corporation (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 for sale housing located in the Center Village (CV) zone as part of the Sunset Area 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 Willowcrest Townhomes with twelve (12) new multi-family housing units (hereinafter referred to as the “Project”) on property located on Edmonds Avenue NE between NE Sunset Boulevard and NE 12th Street, 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 #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 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. 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; 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 sale amount of each multi-family housing unit sold to date; AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 3 e. The income of each initial purchaser of owner-occupied multi-family housing units to date at the time of purchase; f. A statement that the Project meets the affordable housing requirements in Paragraph 5 below, along with the number, type, and specific multi-family housing units sold to date to meet the affordable housing requirements; and g. 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 twelve (12) successive years beginning January 1st of the year immediately following the calendar year of issuance of the Final Certificate of Tax Exemption. For the duration of the twelve (12)-year exemption period, the Applicant agrees to sell one-hundred percent (100%) of the Project’s new multi-family housing units [i.e., all twelve (12) of the new multi-family housing units] as affordable housing to low income households at eighty percent (80%) or less of median income. The following definitions apply to the requirements in this paragraph 5: a. For the purposes of housing intended for owner occupancy, “affordable housing" means residential housing that is within the means of and purchased by low income households. AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 4 b. "Household" means a single person, family, or unrelated persons living together. c. "Low income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below eighty percent (80%) of the median income. d. “Median income” means the median family income adjusted for family size for King County, as reported by the United States Department of Housing and Urban Development (HUD). In the event that HUD no longer publishes median income figures for King County, the City may use or determine such other method as it may choose to determine the King County median income, adjusted for household size. 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 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; AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 5 g. A certification that the Project has been and continues to be in compliance with the affordable housing requirements included in paragraph 5 above since the date the City issued the Final Certificate of Tax Exemption; h. A breakdown of the number, type, and specific multi-family housing units rented or sold during the twelve months ending with the anniversary date to meet the affordable housing requirements included in paragraph 5 above; i. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; and j. 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 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 AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 6 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; and [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, 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. 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 AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 7 terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13. Audits and Inspection of Records. Applicant agrees to maintain, retain, and make available for inspection upon seven days’ written request from the City, any records pertaining to this contract. 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. 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: Homestead Community Land Trust 412 Maynard Avenue S, Suite 201 Seattle, WA 98104 Phone: 206-323-1227, ext. 113 Fax: 206-588-0253 Attention: Kathleen Hosfeld, Executive Director 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 #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. HOMESTEAD COMMUNITY LAND TRUST A Washington nonprofit corporation ____________________________ By: Kathleen Hosfeld, Executive Director CITY OF RENTON ____________________________ Armondo Pavone, Mayor APPROVED AS TO FORM: ATTEST: ____________________________ ___________________________ Shane Moloney, City Attorney Jason Seth, City Clerk AGENDA ITEM #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 9 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 202____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Kathleen Hosfeld, to me known to be the Executive Director of Homestead Community Land Trust 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 she 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 #6. f) Multi-Family Housing Property Tax Exemption Agreement Willowcrest Townhomes 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 202____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Armondo Pavone, 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 #6. f) Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description Willowcrest Townhomes i MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION Lots A1 through A4, B1 through B4, C1 through C4, Tract A and Tract B of Willowcrest Townhomes Binding Site plan, under City of Renton project number LUA-1900061, described as follows; That portion of the South half of the West half of the Northwest quarter of the Northwest quarter of the Northwest quarter of Section 9, Township 23 North, Range 5 East, Willamette Meridian, in King County, Washington, more particularly described as follows; Beginning at the Northeast corner of said Subdivision; THENCE South 00°50'58" West, 256.75 feet along the East line of said Subdivision to the North line of the South 75.00 feet of said Subdivision; THENCE North 88°55'42" West, 96.90 feet along said North line to the East line of Lot 1 of said Binding Site Plan; THENCE North 00°00'11" West, 70.26 feet along said East line; THENCE North 88°55'42" West, 40.01 feet along said East line; THENCE North 00°00'11" West, 145.48 feet along said East line; THENCE South 88°56'54" East, 40.01 feet along said East line; THENCE North 00°00'11" West, 41.01 feet along said East line to the North line of said Subdivision; THENCE South 88°56'54" East, 100.72 feet along said North line to the POINT OF BEGINNING. SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON. AGENDA ITEM #6. f)