HomeMy WebLinkAboutA 20051104000894 , r
AFTER RECORDING, MAIL TO: III 11 11111 11 1 11 11 11 111 111 11 11
City Clerk's Office 20051104000894
City of Renton CITY OF RENTON AG 45.00
1055 S Grady Way S1G04 Z0OF 11403
Renton, WA 98055 KING COUNTY, WA
DOCUMENT TITLE: Multi-Family Housing Property Tax Exemption Agreement for
Merrill Gardens at Renton Centre
REFERENCE NUMBER(S) OF DOCUMENTS ASSIGNED OR RELEASED: N/A
GRANTOR: Merrill Gardens at Renton Centre, LLC
GRANTEE: City of Renton
LEGAL DESCRIPTION (ABBREVIATED): That portion of Henry Tobin Donation
Claim No. 37, Section 18, Township 23 North, Range 5 East, W.M., in King County,
Washington.
Additional legal description is on pages 11-13 of document (Exhibit A, pages i-iii).
ASSESSOR'S PROPERTY TAX PARCEUACCOUNT NUMBER(S):
0007200156
0007200154
0007200104
7231502030
7231502120
The Auditor/Recorder will rely on the information provided on the form. The staff will
not read the document to verify the accuracy or completeness of the indexing
information provided herein.
1 1 '
CAG-05-169
MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION
AGREEMENT FOR MERRILL GARDENS AT RENTON CENTRE
THIS AGREEMENT is entered into this //'"day of Ce-te?-d-eA-) ,
200 by and between MERRILL GARDENS AT RENTON CENTRE, LLC
(hereinafter referred to as the "Applicant"), and the CITY OF RENTON, a municipal
corporation (hereinafter referred to as the "City").
Recitals.
1. Applicant has applied to the City for a limited property tax exemption as
provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing
residential rental housing in the Center Downtown (CD) zone residential
targeted area and the Economic Development, Neighborhoods and Strategic _
Planning Department Administrator has approved the application; and
2. Applicant has submitted to the City preliminary site plans, floor plans and
elevations for Merrill Gardens at Renton Centre with one hundred fifty five
(155) new multi-family housing units (hereinafter referred to as the "Project")
on property situated at 104 Burnett Avenue South, 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
Economic Development, Neighborhoods and Strategic Planning Department (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 4-1-2201.
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
Economic Development, Neighborhoods and Strategic Planning Department or its
functional successor (hereafter referred to as "Department") as of the date of the City
Council's approval of this Agreement, subject to such modifications thereto as may
be required to comply with applicable codes and ordinances; provided, that in no
event shall such construction provide fewer than thirty (30) new multi-family housing
dwelling units designed for permanent residential occupancy.
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 years from
the date of approval of this Agreement by the Council, unless extended by the
Administrator for cause as provided in RMC 4-1-2201.
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;
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 2
c. A statement that the Project was completed within the required three-
year period or any authorized extension and documentation that the Project was
completed in compliance with the terms of this Agreement; and
d. 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 two hundred and fifty dollars
($250.00); and
d. Met all other requirements provided in RMC 4-1-220 for issuance of the
Final Certificate of Tax Exemption.
5. Annual Certification.
Within thirty (30) days after the first anniversary of the date the City filed the
Final Certificate of Tax Exemption and each year thereafter for a period of ten (10)
years, Applicant agrees to file a certification or declaration with the Administrator,
verified upon oath or affirmation, with respect to the accuracy of the information
provided therein, containing the following:
a. A statement of the occupancy and vacancy of the multi-family housing
units during the previous year;
b. A certification that the multi-family housing units, Project and Property
have not changed use since the date of filing of 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 RMC 4-1-
220;
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 3
d A description of any improvements or changes to the Project made
after the filing of the Final Certificate or the most recent certification; and
e. Any such further information that the Administrator deems necessary or
useful to evaluate eligibility for the Final Certificate of Tax Exemption.
6. No Violations for Duration of Exemption.
For the duration of the property tax exemption granted under RMC 4-1-220,
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 Planning, Building and Public Works Department 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 Planning, Building and Public Works
Department.
7. 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.
8. Cancellation of Exemption - Appeal.
a. The City reserves the right to cancel the Final Certificate of Tax
Exemption if at any time the multi-family housing units, the Project or the Property no
longer complies with the terms of this Agreement or with the requirements of RMC 4-
1-220, or for any other reason no longer qualifies for a property tax exemption.
b. If the property tax exemption is canceled for non-compliance, Applicant
acknowledges that state law requires that an additional real property tax is to be
imposed in the amount of: [a} the difference between the property tax paid and the
property tax that would have been paid if it had included the value of the
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p.4
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 8; [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.
9. 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 two hundred and fifty
dollars ($250.00) contract amendment fee.
10. 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.
11. Recording of Agreement.
The Administrator shall cause to be recorded at the Applicant's expense, or
require Applicant to record, in the real property records of the King County
Department of Records and Elections, this Agreement and any other documents as
will identify such terms and conditions of eligibility for exemption as the Administrator
deems appropriate for recording.
12. Audits and Inspection of Records.
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 5
Applicant understands and agrees that the City has the right to audit or review
appropriate records to assure compliance with this Agreement and RMC 4-1-220 and
to perform evaluations of the effectiveness of the multi-family housing property tax
exemption program. Applicant agrees to make appropriate records available for
review or audit upon seven days' written notice by the City.
13. 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:
Merrill Gardens at Renton Centre, LLC
1938 Fairview Avenue E
Suite 300
Seattle, WA 98102
Phone: 206-676-5300 Fax: 206-676-5322
Attention: Douglas D. Spear
CITY: City of Renton
Economic Development, Neighborhoods and Strategic Planning
1055 South Grady Way
Renton, Washington 98055
Phone: (425) 430-6592 Fax: (425) 430-7300
Attention: Administrator
14. 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.
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year written above.
ovomm
CITY OF RENTON �o�A OFREA,ro
_
46-40 Gc�� SEAL *_
Kathy K olker-Wheeler, Mayor
APPROVED AS TO FORM: ATTEST: jii���� TEDser *��`�
City Attorney Bonnie I. Walton, City Clerk
MERRILL GARDENS AT RENTON CENTRE, LLC
A Washington Limited Liability Company
By: MGJV Investments II, LLC, a Washington Limited Liability Company
Its: Manager
By: Merrill Gardens, L.L.C., a Washington Limited Liability Company
Its: Manager
By: Merrill Associates Limited Partnership
A Washington Limited Partnership
Its: Manager
By: The Merrill Group, Inc., a Washington Corporation
Its: General Partner
By: L 2:—
Print name: LOW,(WILI`S 3), Spear
Its: C-F0
•B •
—int name: W i l I , .0.41, Jr
Its: fre6ldrnt
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 7
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this 1141+1 day of 0C-11 h-eAr , 200 5 , before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me Kathy Keolker-Wheeler, 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 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.
.‘‘`E"NE itis NOTARY PUBLIC
s- 01,,\t.��a�(! lIy/ Printed Name: :�l� M .rn-SMI f
``s�oN ,,
olA/p ,o��,,��2�, Residing at ik
sv _ . My commission expires 11G i r
Eel
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II itzw,
[notary seal]
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 8
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this 3 day of A Ug1(6f , 200 5 , before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me aZij ifl3 V' (5 j9
J (name)
to me known to be the 6ve- C-FD
(title)
of The Merl 1 rDU , 1 ne.
(cbmpany)
that executed the within and foregoing instrument and acknowledged said instrument
to be the free and voluntary act and deed of said party, for the uses and purposes
therein mentioned, and on oath stated that he was authorized to execute said
instrument.
In witness whereof I have hereunto set my hand and affixed my official seal
the day and year first above written.
.► ' Adis
,+''�� 4 V. K� (-letPUBL
`�,Q� ;aass'ONF Printed Name: !D/ a . A i 1
NOTAgy ami Residing at •1i1Tl
At. My commission expires Ifiri • O.
PUBLIC
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[notary seal]
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 9
•
STATE OF WASHINGTON )
) ss.
COUNTY OF KING ) n
On this 8' day of YI'UtUof , 200 5 , before the
undersigned, a Notary Public in and for they state of Washington, duly commissioned
and sworn, personally appeared before me wl l (1 Cr M i< Peb- J ,
(name)
1
to me known to be the 'Prc.J" (dont
(title)
of -The Merri I El ript nC.
(cbmpar#y)
that executed the within and foregoing instrument and acknowledged said instrument
to be the free and voluntary act and deed of said party, for the uses and purposes
therein mentioned, and on oath stated that he was authorized to execute said
instrument.
In witness whereof I have hereunto set my hand and affixed my official seal
the day and year first above written.
n / 1
01'O-tN v. kU N A PUBL C
\\\���QSIO EtA _` Printed Name: ,.i , .
NOTARY pt; Residing at •.,'2jI 1
'j•
' My commission expires MGM'
c� ►
[notary seal]
Multi-Family Housing Property Tax Exemption Agreement
Merrill Gardens at Renton Centre, p. 10
•
MULTI-FAMILY HOUSING PROPERTY
TAX EXEMPTION AGREEMENT
EXHIBIT A
LEGAL DESCRIPTION
PARCEL A:
That portion of Henry Tobin Donation Claim No. 37, Section 18, Township 23
North, Range 5 East, W.M., in King County, Washington, described as follows:
Commencing at the northwest corner of Block 24, Town of Renton Plat, which
corner bears south 89°07' east a distance of 30 feet and north 0°46' east a
distance of 530 feet from the monument at the intersection of Second Avenue
and Burnett Street;
Thence north 0°46' east a distance of 150 feet;
Thence south 89°07' east a distance of 115 feet;
Thence south 0°46' west a distance of 150 feet;
Thence north 89°07' west a distance of 115 feet to the point of beginning;
ALSO, Lots 1 through 4, inclusive, and Lots 16 and 17, Block 24, Town of
Renton, according to the plat thereof recorded in Volume 1 of Plats, page 135, in
King County, Washington;
EXCEPT the east 5 feet of said Lots 1 through 3 conveyed to the City of Renton
for alley purposes by deed recorded under Recording Numbers 2117471 and
2117484;
AND EXCEPT the north 10 feet of the south 30 feet of said Lot 3 conveyed for
alley by Recording Number 7811200482;
TOGETHER WITH those portions of the alley vacated by City of Renton
Ordinance Number 3272, recorded under Recording Number 7812140796
adjoining or abutting thereon, which attached to said premises by operation of
law.
PARCEL B:
Lot 18, Block 24, Town of Renton, according to the plat thereof recorded in
Volume 1 of Plats, page 135, in King County, Washington;
EXCEPT the west 5 feet thereof conveyed to the City of Renton for alley
purposes by deed recorded under Recording Number 2117478.
Multi-Family Housing Property Tax Exemption Agreement
Exhibit A—Legal Description
Merrill Gardens at Renton Centre - p. i
I
PARCEL C:
That portion of the Henry Tobin Donation Land Claim No. 37, Section 18,
Township 23 North, Range 5 East, W.M., in King County, Washington,
described as follows:
Beginning at a point on the east line of Burnett Street 150 feet north of the
northwest corner of Block 24, Town of Renton, according to the plat thereof
recorded in Volume 1 of Plats, page 135, in King County, Washington;
Thence east parallel with the north line of said Block 24 a distance of 115 feet;
Thence north parallel with the east line of Burnett Street 50 feet;
Thence west parallel with the north line of said Block 24 a distance of 115 feet to
the east line of Burnett Street;
Thence south on the east line of Burnett Street 50 feet to the point of beginning.
PARCEL D:
That portion of Henry Tobin Donation Land Claim No. 37, Section 18, Township
23 North, Range 5 East, W.M., in King County, Washington, described as
follows:
Beginning on the east margin of Burnett Street in the City of Renton north 0°46'
east 730 feet from the centerline of Second Avenue;
Thence south 89°07' east 115 feet;
Thence north 00°46' east 75 feet;
Thence south 89°07' west 115 feet;
Thence south 0°46' west 75 feet to the point of beginning.
PARCEL E:
That portion of Henry Tobin Donation Land Claim No. 37, Section 18, Township
23 North, Range 5 East, W.M., in King County, Washington, described as
follows:
Commencing at the northwest corner of Block 24, Town of Renton, according to
the plat thereof recorded in Volume 1 of Plats, page 135, in King County,
Washington, which corner bears south 89°07' east 30 feet and north 0°46' east
530 feet from the monument at the intersection of Second Avenue and Burnett
Street;
Thence north 0°46' east 275 feet to the point of beginning;
Multi-Family Housing Property Tax Exemption Agreement
Exhibit A—Legal Description
Merrill Gardens at Renton Centre, p. ii
•
Thence north 0°46' east 76.52 feet;
Thence south 89°07' east 115 feet;
Thence south 0°46' west 76.52 feet;
Thence north 89°07' west 115 feet to the point of beginning.
•
Multi-Family Housing Property Tax Exemption Agreement
Exhibit A—Legal Description
Merrill Gardens at Renton Centre, p. iii