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Home My WebLink AboutFinal Agenda Packet CITY OF RENTON AGENDA - City Council Regular Meeting 7:00 PM - Monday, April 20, 2020 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. PROCLAMATION a) Sexual Assault Awareness Month - April 2020 4. SPECIAL PRESENTATION a) Renton Police Department – “Hello, We’re Here For You” 5. ADMINISTRATIVE REPORT 6. AUDIENCE COMMENTS In response to COVID-19, Councilmembers are attending this meeting remotely. Due to security concerns, the video-conference identification number is not being shared publicly. City Hall is closed so no in-person comments will be accepted, however, residents are encouraged to participate in a variety of ways. 1) Residents may submit comments in advance to cityclerk@rentonwa.gov, 2) Residents may also call-in to 425-430-7171 then enter code 0033665# to listen to the proceedings, 3) Residents may view the proceedings live on Renton’s Channel 21, and 4) Residents may view the proceedings streaming live at http://rentonwa.gov/streaming. 7. 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 April 13, 2020. Council Concur b) AB - 2634 Community & Economic Development Department requests approval to waive the application deadline and approve the Multi-Family Housing Property Tax Exemption (MFPTE) Agreement, with Penney Lofts, LLC, which addresses the terms and conditions for the Penny Lofts multi-family project to receive a partial property tax exemption for eight (8) years upon project completion. Refer to Planning & Development Committee 8. 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. 9. LEGISLATION Resolution: a) Resolution No. 4406: Support of COVID-19 Vaccine Manufacturing Facility Ordinance for second and final reading: b) Ordinance No. 5968: Adopting Interim Zoning Control - Adding RMC 4-1-080.F (First Reading on 4/13/2020) 10. NEW BUSINESS (Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more information.) 11. ADJOURNMENT COMMITTEE OF THE WHOLE MEETING AGENDA (Preceding Council Meeting) 5:45 p.m. - MEETING REMOTELY 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 #3. a) Renton Police Department – “Hello, We’re Here For You” VIEW “YOUTUBE” PRESENTATION AT THIS ADDRESS: https://youtu.be/jsOckN2XEsI AGENDA ITEM #4. a) April 13, 2020 REGULAR COUNCIL MEETING MINUTES CITY OF RENTON MINUTES ‐ City Council Regular Meeting 7:00 PM ‐ Monday, April 13, 2020 Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way CALL TO ORDER Mayor Pavone called the meeting of the Renton City Council to order at 7:00 PM. 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 attended remotely) Councilmembers Absent: ADMINISTRATIVE STAFF PRESENT Armondo Pavone, Mayor Robert Harrison, Chief Administrative Officer Leslie Clark, Senior Assistant City Attorney Jason Seth, City Clerk Preeti Shridhar, Deputy Public Affairs Administrator Chip Vincent, Community & Economic Development Administrator Jan Hawn, Administrative Services Administrator Ellen Bradley‐Mak, Human Resources and Risk Management Administrator Kelly Beymer, Community Services Administrator Jennifer Henning, Planning Director Cliff Long, Economic Development Director Chief Ed VanValey, Police Department Chief Rick Marshall, Renton Regional Fire Authority (All City staff attended remotely except City Clerk Seth) AGENDA ITEM #7. a) April 13, 2020 REGULAR COUNCIL MEETING MINUTES PROCLAMATION a) National Public Safety Telecommunicators Week Proclamation: A proclamation by Mayor Pavone was read declaring April 12 ‐ 18, 2020 to be “National Public Safety Telecommunicators Week” in the City of Renton, encouraging all members of the community to join in this special observation in honor of the men and women whose diligence and professionalism keep our city and public safe. MOVED BY PÉREZ, SECONDED BY CORMAN, COUNCIL CONCUR IN THE PROCLAMATION. CARRIED. 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:  Companies and services that are deemed essential by the Governor’s Stay‐at‐Home Order may be performing emergency work within the City of Renton in order to maintain their critical infrastructure to support the community. City of Renton staff are working with these companies and services to ensure that they are working safely within the public roadways and request patience and caution when approaching any work zone.  While the City of Renton will not be celebrating Arbor Day as previously planned on April 25, there is some exciting news to impart. The city was recently awarded the “Sterling Tree City USA Award” by the Arbor Day Foundation. This is an award of distinction for Tree Cities who have received Growth Awards for 10 consecutive years. This award underlines the support of green initiatives in Renton and the important place trees have in our urban landscape. An Arbor Day celebration and tree‐planting event will be rescheduled later this year.  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 three times per week 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. CONSENT AGENDA Items listed on the Consent Agenda were adopted with one motion, following the listing. a) Approval of Council Meeting minutes of March 23, 2020. Council Concur. b) Approval of Council Meeting minutes of April 6, 2020. Council Concur. c) Approval of Committee of the Whole Meeting minutes of April 6, 2020. Council Concur. d) AB ‐ 2627 Administrative Services Department recommended approval of the 2020 Carry Forward/1st Quarter budget adjustment in the amount of $137,996,543 with the total amended 2019/2020 budget to be $845,572,113 for the biennium; and approval of the amended 2019/2020 Fee Schedule. Refer to Finance Committee. AGENDA ITEM #7. a) April 13, 2020 REGULAR COUNCIL MEETING MINUTES e) AB ‐ 2631 Community & Economic Development Department recommended approval of Amendment No. 3 to the Real Estate Disposition and Development Agreement, with Cosmos International Corp., extending the closing date until July 16, 2020 or 10 days after Cosmos has an opportunity to review final lease terms with the King County Library System, and extending other milestone dates by an equivalent number of days the Feasibility Period has been extended from the original 90‐day period. Council Concur. f) AB ‐ 2612 Community & Economic Development Department recommended approval of two grant agreements, with the Port of Seattle, in order to accept $65,000 and an additional $5,000 in grant funds to support Renton's Community Marketing Campaign. The City's match for the agreements are $32,500 and $5,000 respectively. Council Concur. MOVED BY PÉREZ, SECONDED BY CORMAN, COUNCIL CONCUR TO APPROVE THE CONSENT AGENDA, AS PRESENTED. CARRIED. UNFINISHED BUSINESS a) Finance Committee Chair Prince presented a report concurring in the staff recommendation to approve the following payments: 1. Accounts Payable – total payment of $11,309,453.86 for vouchers, 32020, 381587‐ 381600, 381612‐382180, 382194‐382373 payroll benefit withholding vouchers 6231‐ 6250, 381601‐381611, 382181‐382193 and twelve wire transfers. 2. Payroll – total payment of $3,082,492.51 for payroll vouchers which includes 1,320 direct deposits and 22 checks (02/16/20‐02/29/20 & 03/01/20‐03/15/20 pay period). 3. Kidder Mathews vouchers 6068‐6082 totaling $49,433.17. 4. Municipal Court vouchers 017625‐017651 totaling $15,617.00. MOVED BY PRINCE, SECONDED BY VǍN, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. b) Finance Committee Chair Prince presented a report concurring in the staff recommendation to 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 Habitat For Humanity South King County La Fortuna Phase II development, with the City contributing 20‐percent of the outstanding balance for the remaining transportation, parks, and fire impact fees. The estimated total fees requested to be waived for the HFHSKC La Fortuna Phase II project are $169,721. 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. MOVED BY PRINCE, SECONDED BY VǍN, COUNCIL CONCUR IN THE COMMITTEE RECOMMENDATION. CARRIED. LEGISLATION Resolution: a) Resolution No. 4405: A resolution was read waiving certain development and impact fees for the Habitat for Humanity South King County La Fortuna Phase II Project. MOVED BY PÉREZ, SECONDED BY VǍN, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. AGENDA ITEM #7. a) April 13, 2020 REGULAR COUNCIL MEETING MINUTES Ordinance for first reading: b) Ordinance No. 5968: An ordinance was read adopting an Interim Zoning Control to add a new Subsection 4‐1‐080.f to the Renton Municipal Code, temporarily extending the period of validity of certain land use and subdivision approvals, building permits, civil construction permits, and public works permits; providing for severability; declaring an emergency; and establishing an immediate effective date. MOVED BY CORMAN, SECONDED BY MCIRVIN, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING AT THE NEXT COUNCIL MEETING. CARRIED. NEW BUSINESS Please see the attached Council Committee Meeting Calendar. ADJOURNMENT MOVED BY PRINCE, SECONDED BY CORMAN, COUNCIL ADJOURN. CARRIED. TIME: 7:18 P.M. Jason A. Seth, MMC, City Clerk Jason Seth, Recorder 13 Apr 2020 AGENDA ITEM #7. a) Council Committee Meeting Calendar April 13, 2020 April 20, 2020 Monday CANCELLED Utilities Committee, Chair O’Halloran 4:00 PM Public Safety Committee, Chair Benedetti – VIDEOCONFERENCE 1) Public Safety Update Related to COVID-19 4:45 PM Transportation Committee, Chair McIrvin - VIDEOCONFERENCE 1) Emerging Issues Seaplane Base Lease TIP Prioritization 5:45 PM Committee of the Whole, Chair Pérez – VIDEOCONFERENCE 1. Finance Update 2. Forestry Ordinance Update 7:00 PM City Council Meeting, Chair Pérez – VIDEOCONFERENCE AGENDA ITEM #7. a) AB - 2634 City Council Regular Meeting - 20 Apr 2020 SUBJECT/TITLE: Penney Lofts - 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 similar 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 February 7, 2020, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application for the Penney Lofts, a 24-unit mixed-use renovation project in the Downtown 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 and conditions fo r the Penney Lofts project to receive a partial property tax exemption for 8 years upon completion. Subject to the Council’s waiver of the application deadline and approval of the agreement, the CED Administrator intends to approve the Exemption application for the project. Penney Lofts is an integral part of the City’s Downtown Renton revitalization efforts. EXHIBITS: A. Issue Paper B. Penney Lofts Project Elevations C. Multi-Family Housing Property Tax Exemption Agreement for the Penney Lofts STAFF RECOMMENDATION: Staff recommends that the Council: (1) waive the application deadline; (2) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Penney Lofts project to receive a partial property tax exemption for 8 years upon completion; and (3) authorize the Mayor to execute said agreement in substantially the same form. AGENDA ITEM #7. b) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: April 13, 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: Penney Lofts – Multi-Family Housing Property Tax Exemption Agreement ISSUE: Should the City Council waive the application deadline and approve the Multi-Family Housing Property Tax Exemption Agreement for the Penney Lofts project and authorize the Mayor to execute the agreement? RECOMMENDATION: Staff recommends that the Council: (1) waive the application deadline; (2) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Penney Lofts project to receive a partial property tax exemption for 8 years upon completion; and (3) authorize the Mayor to execute said agreement in substantially the same form. BACKGROUND SUMMARY: On February 7, 2020, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application from Penney Lofts LLC for the Penney Lofts project in the Downtown 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 Penney Lofts project to receive a partial property tax exemption for 8 years upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to app rove the Exemption application for the Penney Lofts 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 #7. b) Ruth Perez, Council President Page 2 of 3 April 13, 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. The Penney Lofts project includes 24 new multi-family housing units (14 studios and 10 lofts) as part of a mixed-use renovation of the former JC Penney building (a.k.a., the former American Drapery, Blind and Carpet Inc.) located at 700 S 3rd Street in Downtown Renton. The project site totals 11,500 square feet and the existing building totals 32,732 square feet and is two stories high, with a basement level. The renovation will include a 11,538 square foot butterfly roof extension that would increase the building height to 36 feet and 5,860 square feet of mixed-use retail/restaurant space. Parking will be provided off-site at the nearby City Center Parking Garage. Pursuant to RMC 4-1-220.D.2.b.i, the CED Administrator has waived the requirement that the Project consist of a minimum of 30 new dwelling units of multi-family housing and be a new structure, thereby allowing for the construction of 24 new multi-family housing units as part of a mixed-use renovation project of an existing building in the center of Downtown Renton. Penney Lofts LLC received a building permit for the planned renovations on September 4, 2019. Per RMC 4-1-220.E.3, Exemption applications are due prior to the issuance of the building permit for the project. However, the owner was able to apply for an Exemption until the Renton City Council modified the RMC in late-2019 (Ordinance 5956, 12-9-2019) to allow for a mixed-use renovation project in Downtown Renton with less than 30 units to be eligible for the Exemption, subject to a waiver by the CED Administrator. CED supports the mixed-use development as an integral part of the City’s Downtown Renton revitalization efforts and requests that the City Council waive the application deadline for the project. The estimated potential property tax savings related to the Exemption is approximately $16,486 per year ($131,891 for the twelve-year period) for the Penney Lofts project. This equates to a potential property tax savings of approximately $1,374 per year per housing unit ($10,991 per housing unit for the 8-year period). 1 In 2007, the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910, in part, to modify the limited the property tax exemption for future eligible projects to eight years or 12 years (the longer term being available if the project provides at least 20% of the units as affordable housing). AGENDA ITEM #7. b) Ruth Perez, Council President Page 3 of 3 April 13, 2020 The project paid a $1,000 initial application fee and satisfies the City’s Exemption eligibility requirements (allowing for the waivers noted above) as outlined in RMC 4-1-220D: • The project is located in the Center Downtown (CD) zone as part of the Downtown designated residential targeted area; • The project includes twenty-four new multi-family housing units located in one or more buildings designed for permanent residential occupancy, each with four or more dwelling units; • The project is a mixed-use project in the CD zone with retail storefront space; and • At least 50% of the building will be used for permanent residential occupancy. The City received an Exemption application for the Penney Lofts project on February 7, 2020. As provided for in RMC 4-1-220F, (1) the CED Administrator needs to approve or deny the Exemption application 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 Penney Lofts project to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Penney Lofts project. (Please see the proposed Exemption Agreement for the Penney Lofts project.) CONCLUSION: Renton’s Multi-Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including Downtown Renton. The Penney Lofts project will provide 24 units of new housing as part of a mixed-use renovation project and approximately $1.9 million in investment in Downtown Renton. The project is an integral part of the City’s Downtown Renton revitalization efforts 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) Penney Lofts project elevations (2) Multi-Family Housing Property Tax Exemption Agreement for the Penney Lofts AGENDA ITEM #7. b) AGENDA ITEM #7. b) RECEIVED06/03/2019 striplettBUILDING DIVISIONB19002937_v1AGENDA ITEM #7. b) LOFT PERSPECTIVESR3.2# REVISIONDATE303 Nickerson Street I Seattle, WA ryanrhodesdesigns.com I 206.632.1818 Issueprojectnumbernumber sheet16-39RENOVATION FOR:700 South 3rd Street, Renton, WA PENNEY LOFTSProposed:05/09/2019Land - UseMay 9 2019INTERIOR LOFT PERSPECTIVE SCALE: NTS INTERIOR LOFT PERSPECTIVE SCALE: NTS INTERIOR LOFT PERSPECTIVE SCALE: NTS RECEIVED 06/03/2019 striplett BUILDING DIVISION B19002937_v1AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 1 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR PENNEY LOFTS THIS AGREEMENT is entered into this ____ day of _______________, 20 2___ by and between PENNY LOFTS LLC, a Washington limited liability company (hereinafter referred to as the “Applicant”), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the “City”). Recitals. 1. Applicant has applied to the City for a limited property tax exemption a s provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Center Downtown (CD) zone as part of the Downtown residential targeted area and the Department of Community and Economic Development (CED) Administrator has approved the application; and 2. Applicant has submitted to the City preliminary site plans, floor plans, and elevations for Penney Lofts with twenty four (24) new multi-family housing units to be constructed as part of a mixed-use renovation project of an existing building (hereinafter referred to as the “Project”) on property located at 700 S 3rd Street, Renton, Washington, and more fully described in Exhibit A attached hereto, (hereinafter referred to as the “Property”); and 3. Pursuant to RMC 4-1-220.D.2.b.i, the CED Administrator has waived the requirement that the Project consist of a minimum of thirty (30) new dwelling units of multi-family housing and be a new structure(s), thereby allowing for the construction of twenty four (24) new multi-family housing units as part of a mixed- use renovation project of an existing building in the center of Downtown Renton; and 4. The Applicant is the owner of the Property; and 5. 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 AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 2 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. 2. Agreement to Construct Multi-Family Housing. a. Applicant agrees to construct the Project on the Property substantially as described in the site plans, floor plans, and elevations on file with the City’s Department of Community and Economic Development or its functional successor (hereafter referred to as “Department”) as of the date of the City Council’s approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than twenty four (24) new multi-family housing dwelling units designed for permanent residential occupancy, nor shall permanent residential housing comprise less than fifty percent (50%) of the gross floor area of the mixed-use project constructed pursuant to this Agreement. b. Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City’s development regulations in Title IV of the RMC and the City’s applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City’s development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c. Applicant agrees that the Project will be completed within three (3) years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-220I. 3. Requirements for Final Certificate of Tax Exemption. Applicant may, upon completion of the Project and upon issuance by the City of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, request a Final Certificate of Tax Exemption. The request shall be in writing directed to the Administrator and be accompanied by the following: a. A statement of expenditures made with respect to each multi-family housing unit and the total expenditures made with respect to the entire Project and Property; AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 3 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 monthly rent of each multi-family housing unit rented to date; e. The income of each renter household to date at the time of initial occupancy; and f. Any such further information that the Administrator deems necessary or useful to evaluate the Project’s eligibility for the Final Certificate of Tax Exemption. 4. Agreement to Issue Final Certificate of Tax Exemption. The City agrees to file a Final Certificate of Tax Exemption with the King County Assessor within forty (40) days of submission by the Applicant of all materials requ ired by paragraph 3 above, if Applicant has: a. Successfully completed the Project in accordance with the terms of this Agreement and RMC 4-1-220; b. Filed a request with the City for a Final Certificate of Tax Exemption with the Administrator and submitted the materials described in paragraph 3 above; c. Paid the City a fee in the amount of one thousand dollars ($1,000); and d. Met all other requirements provided in RMC 4-1-220 for issuance of the Final Certificate of Tax Exemption. 5. Duration of the Property Tax Exemption Subject to the terms of this Agreement and the requirements of RMC 4-1-220, the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem property taxation for eight (8) successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption. 6. Annual Certification and Report. Within thirty (30) days after the first anniversary of the date the City issued the Final Certificate of Tax Exemption and each year thereafter for the duration of the tax AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 4 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; g. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; and h. Any such further information that the Administrator deems necessary or useful to evaluate the Applicant’s compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220. 7. No Violations for Duration of Exemption. For the duration of the property tax exemption granted under RMC 4-1-220 and noted in paragraph 5 above, Applicant agrees that the Project and the Property will have no violations of applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the development regulations in Title IV of the RMC, for which the Department of Community and Economic Development or its functional successor shall have issued a notice of violation, citation or other notification that is not resolved by a certificate of compliance, certificate of release, withdrawal or otherwise, within the time period for compliance, if any, provided AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 5 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 longer complies with the terms of this Agreement or with the requirements of RMC 4 -1-220, or for any other reason no longer qualifies for a property tax exemption. b. If the property tax exemption is canceled for non-compliance, Applicant acknowledges that state law requires that an additional real property tax is to be imposed in the amount of: [a} the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements, dated back to the date that the improvements became nonqualifying; [b] a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 9; [c] interest at the statutory rate on delinquent property taxes and penalties, calculated from the date the tax would have been due without penalty if the improvements had been assessed without regard to the exemptions provided by Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and penalty, become a lien on the Property and attach at the time the Property or portion of the Property is removed from multi -family housing use or the amenities no longer meet applicable requirements, and that the lien has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the Property may become charged or liable. Applicant further acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for foreclosure of liens for delinquent real property taxes. c. Upon determining that a tax exemption is to be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination in accordance with RMC 4 -1-220L2. AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 6 10. Amendments. No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant’s payment of a five hundred dollars ($500) contract amendment fee. 11. Binding Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 12. Recording of Agreement. The Administrator shall cause to be recorded at the Applicant’s expense , or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13. Audits and Inspection of Records. Applicant 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: Penny Lofts LLC P.O. Box 9606 Seattle, WA 98109 Phone: 206-660-8408 Attention: David Smith, Managing Member AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 7 CITY: City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, Washington 98055 Phone: (425) 430-6592 Fax: (425) 430-7300 Attention: Administrator 15. Severability. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting terms or clause, and to this end, the terms of the Agreement are declared to be severable. AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. PENNEY LOFTS LLCA Washington Limited Liability Company ____________________________ By: David Smith, Managing Member CITY OF RENTON ____________________________ Armondo Pavone, Mayor APPROVED AS TO FORM: ATTEST: ____________________________ ___________________________ Shane Moloney, City Attorney Jason Seth, City Clerk AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 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 David Smith, to me known to be the Managing Member of Penney Lofts LLC that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. [notary seal] NOTARY PUBLIC Printed Name: Residing at My commission expires AGENDA ITEM #7. b) Multi-Family Housing Property Tax Exemption Agreement Penney Lofts 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 #7. b) Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description Penney Lofts i MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION LOTS 9 AND 10, BLOCK 25, 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 THEREOF CONVEYED TO THE CITY OF RENTON BY DEED RECORDED UNDER RECORDING NUMBER 3078943. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON AGENDA ITEM #7. b) 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING PURSUIT OF A COVID‐19 VACCINE MANUFACTURING FACILITY IN THE CITY OF RENTON. WHEREAS, the novel coronavirus (COVID‐19) which first appeared in December 2019 has since spread throughout most of the world; and WHEREAS, the first case of COVID‐19 identified in the United States occurred in Washington State on January 20, 2020; and our state has since experienced nearly 11,000 infections and over 500 deaths; and WHEREAS, COVID‐19 was declared a global pandemic on March 11, 2020; and WHEREAS, as of mid‐April, 2020, nearly two million people around the globe have been diagnosed with COVID‐19 and more than 120,000 people have died; and WHEREAS, the most mission‐critical objective to eliminate COVID‐19 as a deadly disease is to manufacture a scientifically proven vaccine to combat it; and WHEREAS, the U.S. National Institute of Allergy and Infectious Diseases (NIAID) estimates that a COVID‐19 vaccine could be developed in 12 to 18 months; and WHEREAS, governmental, business, and non‐profit foundation leaders have identified a need for the rapid deployment of manufacturing facilities; and WHEREAS, the Seattle‐based Bill and Melinda Gates Foundation has stepped forward to help lead and fund this effort, pledging $250 million to date and vowing to put another few billion dollars into the development of up to seven new factories for potential COVID‐19 vaccine production; and AGENDA ITEM # 9. a) RESOLUTION NO. ________ 2 WHEREAS, the Gates Foundation commitment gives the Pacific Northwest a leg up in leading the globally vital work to develop a COVID‐19 vaccine; and WHEREAS, the ideal site for COVID‐19 vaccine manufacturing should be one that features a blend of manufacturing capacity, health care expertise, a well‐trained work force, and a location in close proximity to multiple modes of transportation; and WHEREAS, the City of Renton is known as one of the nation’s manufacturing hubs, hosting the most efficient airplane‐manufacturing facility in the world (Boeing 737 and 737 MAX), serving as home base to a global and Fortune 500 leader in truck manufacturing (PACCAR), and housing other leading manufacturers such as Alliance Packaging and Trojan Litho; and WHEREAS, the City of Renton is also home to a growing and impressive health care and medical employment cluster, including a hospital ranked as best in the Seattle Metro Area and Washington State (UW Medicine/Valley Medical Center), not to mention the headquarters of Kaiser Permanente Washington and Providence St. Joseph Health, as well as a large pharmacy and tele‐medicine network (Genoa), and the only full‐service tissue bank in the Pacific Northwest (LifeNet Health); and WHEREAS, the City of Renton also has the advantage of being situated on or next to both Interstate 5 and Interstate 405 and within five miles of SeaTac International Airport, along with housing a general‐aviation airport of its own (Renton Airport); and WHEREAS, the City of Renton also boasts a robust and well‐trained work force of more than 54,000 area employees, has technical training expertise at Renton Technical College, maintains an active data‐base to enable the most appropriate siting of manufacturing facilities, and is a multi‐cultural city of inclusion; AGENDA ITEM # 9. a) RESOLUTION NO. ________ 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. The above recitals are adopted as findings. SECTION II. The City Council supports and affirms a call by Mayor Armondo Pavone and King County Councilmember Reagan Dunn for the siting of a COVID‐19 vaccine manufacturing facility in the City of Renton. SECTION III. The City Council gives its backing to an initiative enabling the Mayor and the City’s Community & Economic Development (CED) Department to identify and engage with potential manufacturers of COVID‐19 vaccines and the federal government. SECTION IV. The City Council enthusiastically seconds the effort to compete for and secure commitments to site and support a COVID‐19 vaccine manufacturing facility in Renton. SECTION IV. The City Council authorizes the engagement of outside and consulting help, if it becomes necessary, to assist CED in connecting with business and non‐profit foundation leaders and other key stakeholders in the furtherance of attracting a COVID‐19 vaccine manufacturing facility. 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 AGENDA ITEM # 9. a) RESOLUTION NO. ________ 4 Approved as to form: ______________________________ Shane Moloney, City Attorney RES:1843:4/17/2020 AGENDA ITEM # 9. a) 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, ADOPTING AN INTERIM ZONING CONTROL TO ADD A NEW SUBSECTION 4‐1‐080.F TO THE RENTON MUNICIPAL CODE, TEMPORARILY EXTENDING THE PERIOD OF VALIDITY OF CERTAIN LAND USE AND SUBDIVISION APPROVALS, BUILDING PERMITS, CIVIL CONSTRUCTION PERMITS, AND PUBLIC WORKS PERMITS; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND ESTABLISHING AN IMMEDIATE EFFECTIVE DATE. WHEREAS, on February 29, 2020, the Governor of the State of Washington proclaimed, via Proclamation 20‐05, a State of Emergency due to the novel coronavirus (COVID‐19); and WHEREAS, on March 5, 2020, Mayor Armondo Pavone issued the City of Renton Proclamation of Emergency due to COVID‐19; and WHEREAS, the outbreak of COVID‐19 and its rapid progression in Washington state continues to threaten the lives and health of people as well as the economy; and WHEREAS, the Puget Sound Area, Washington State, and King County have undergone a sudden interruption in construction activity as a result of COVID‐19; and WHEREAS, the Governor of the State of Washington has ordered Washingtonians to stay home via Proclamation 20‐25 Stay Home – Stay Healthy, which order identifies only certain essential construction activities that may proceed during the duration of the order; and WHEREAS, the construction supply chain has been affected by the availability of construction workers and materials due to COVID‐19; and WHEREAS, social distancing requirements under Proclamation 20‐25 Stay Home – Stay Healthy necessitate fewer workers on job sites; and AGENDA ITEM # 9. b) ORDINANCE NO. ________ 2 WHEREAS, developers and City staff have invested substantial amounts of time in land use and subdivision approvals, and building permit, civil construction permit, and public works permit review; and WHEREAS, loss of those various approvals would be detrimental to the City and the general public; and WHEREAS, the City Council has determined that there is a need for an interim zoning control ordinance to address and prevent the loss of certain approvals, as further specified in this ordinance; and WHEREAS, the City Council finds that the subject of this ordinance complies with the Governor’s Proclamation 20‐28 relating to meetings during the COVID‐19 crisis because the subject matter of this action is necessary to respond to the COVID‐19 outbreak and the current public health emergency; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. The above recitals are adopted as findings of fact in support of the interim controls adopted herein pursuant to RCW 35A.63.220 and RCW 36.70A.390, and are found to be true and correct in all respects. SECTION II. As an interim zoning control, section 4‐1‐080 of the Renton Municipal Code is amended to add a new subsection, 4‐1‐080.F to read as follows: F. LIMITED EXTENSION OF PERIOD OF VALIDITY FOR LAND USE AND SUBDIVISION APPROVALS, BUILDING PERMITS, CIVIL CONSTRUCTION PERMITS, AND PUBLIC WORKS PERMITS: AGENDA ITEM # 9. b) ORDINANCE NO. ________ 3 For land use and subdivision approvals, building permits, civil construction permits, and public works permits that were approved and/or issued between January 1, 2015 and the effective date of this subsection 4‐1‐080.F and that were still valid and unexpired as of the effective date of this subsection 4‐1‐080.F, the following shall apply: The period of validity that would otherwise apply under the standard expiration dates listed in this Title is extended by an additional six (6) months. This extension is added to any other extensions possible under the RMC. This extension does not apply to temporary use permits, permits in conjunction with a development agreement, and shoreline permits. This extension is not in addition to any extensions that may be available through the action of the Governor of the State of Washington or the Washington State Legislature on or after the effective date of this subsection 4‐1‐080.F. This extension will automatically expire on October 20, 2020, unless another ordinance is passed extending this date. SECTION III. A public hearing will be scheduled and held within sixty (60) days of the passage of this ordinance. SECTION IV. If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase or word of this ordinance. SECTION V. The City Council declares an emergency for the protection of the public welfare and to enable the purpose and intent of this ordinance to be accomplished. This AGENDA ITEM # 9. b) ORDINANCE NO. ________ 4 ordinance shall take effect immediately when passed by the City Council. The City Clerk shall cause to be published a summary of this ordinance in the City’s official newspaper. The summary shall consist of this ordinance’s title. 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 Date of Publication: ORD:2105:4/14/2020 AGENDA ITEM # 9. b)