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Home My WebLink AboutContractAFTERRECORDING,MAILTO:CityClerk’sOfficeCityofRenton1055SGradyWayRenton,WA98055DOCUMENTTITLE:MULTI-FAMILYHOUSINGPROPERTYTAXEXEMPTIONAGREEMENTFORSOLERAREFERENCENUMBER(S)OFDOCUMENTSASSIGNEDORRELEASED:N/AGRANTOR: SOLERAMANAGER,LLCGRANTEE:CITYOFRENTONLEGALDESCRIPTION(abbreviated):SOLERABLOCKALEGALDESCRIPTION:RealpropertyintheCountyofKing,StateofWashington,describedasfollows:THATPORTIONOFBLOCKS39AND43,CORRECTEDPLATOFRENTONHIGHLANDSNO.2,ACCORDINGTOTHEPLATRECORDEDINVOLUME57 OFPLATS,PAGES92THROUGH98,INCLUSIVE,INKINGCOUNTY,WASHINGTON.SOLERABLOCKBLEGALDESCRIPTION:RealpropertyintheCountyofKing,StateofWashington,describedasfollows:THATPORTIONOFBLOCK39,CORRECTEDPLATOFRENTONHIGHLANDSNO.2,ACCORDINGTO THEPLATRECORDEDINVOLUME57OFPLATS,PAGES92THROUGH98,INCLUSIVE,INKINGCOUNTY,WASHINGTON.FullLegalDescriptiononPage(s):-iiASSESSOR’SPROPERTYTAXPARCELIACCOUNTNUMBER(S):7227801405,7227801205,7227801206Multi-FamilyHousingPropertyTax ExemptionAgreementSOLERARECORDINGCOVERSHEETCAG-21-284 MULTI-FAMILYHOUSINGPROPERTYTAXEXEMPTIONAGREEMENT FORSOLERATHISAGREEMENTisenteredintothis____dayof_______________2021byandbetweenSOLERAMANAGERLLC,(hereinafterreferredtoasthe‘Applicant’),andtheCITYOFRENTON,amunicipalcorporation(hereinafterreferredtoasthe“City’).Recitals.1.ApplicanthasappliedtotheCityforalimitedpropertytaxexemptionasprovidedforinChapter84.14RCWandRMC4-1-220formulti-familyhousingresidentialrentalhousinglocatedintheCenterVillage(CV)zoneaspartofSunsetArearesidentialtargetedareaandtheDepartmentofCommunityandEconomicDevelopmentAdministratorhasapprovedtheapplication;and2.ApplicanthassubmittedtotheCitypreliminarysiteplans,floorplans, andelevationsforSoleraBlockAandBlockBwithfivehundredandninety(590)newmulti-familyhousingunitstobeconstructedaspartofamixed-useproject(hereinafterreferredtoasthe“Project”)onpropertylocatedat2842SunsetBlvd,Renton,Washington,andmorefullydescribedinExhibitAattachedhereto,(hereinafterreferredtoasthe“Property”);and3.Applicantisthe owneroftheProperty;and4.TheCityhas determinedthattheProjectwill,ifdevelopedasproposed,satisfytherequirementsforaFinalCertificateofTaxExemption.NOW,THEREFORE,theCityandApplicantdomutuallyagreeasfollows:1.ConditionalCertificateofAcceptanceofTaxExemptionCityagrees,uponexecutionofthisAgreementfollowingapprovalbytheCityCouncil,toissueaConditional CertificateofAcceptanceofTaxExemption,whichconditional certificateshallexpirethree(3)yearsfromthedateofapprovalofthisAgreementbytheCityCouncil,unlessextendedbytheAdministratoroftheDepartmentofCommunityandEconomicDevelopment(oranyotherCityoffice,departmentoragencythatshallsucceedtoitsfunctions),orhisorherdesignee,(hereafterreferredtoas“Administrator”)asprovidedinRMC4-1 -2201.Multi-FamilyHousingPropertyTaxExemptionAgreementSOLERA114th December 2.AgreementtoConstructMulti-FamilyHousing.a.ApplicantagreestoconstructtheProjectonthePropertysubstantiallyasdescribedinthesiteplans,floorplans,andelevationsonfilewiththeCity’sDepartmentofCommunityand EconomicDevelopmentoritsfunctionalsuccessor(hereafterreferredtoas“Department”)asofthedateoftheCityCouncil’sapprovalofthisAgreement,subjecttosuchmodificationstheretoasmayberequiredtocomplywithapplicablecodesandordinances;provided,thatinnoeventshallsuchconstructionprovidefewerthanthirty(30)newmulti-familyhousingdwellingunitsdesignedforpermanentresidentialoccupancy,norshallpermanentresidentialhousingcompriselessthanfiftypercent(50%)ofthegrossfloorareaofthemixed-useprojectconstructedpursuanttothisAgreement.b.ApplicantagreestoconstructtheProjectonthePropertytocomplywithallapplicablezoningrequirements,landuseregulations,andbuildingandhousingcoderequirements,includingbut notlimitedtotheCity’sdevelopmentregulationsinTitleIVoftheRMCandtheCity’sapplicabledesignstandardsandguidelines.TheApplicantfurtheragreesthatapprovalofthisAgreementbytheCityCouncil,itsexecutionbytheMayor,orissuanceofaConditionalCertificateofAcceptanceofTaxExemptionbytheCitypursuanttoRMC4-1-220F3innowayconstitutesapprovalofproposedimprovementsonthePropertywithrespecttoapplicableprovisionsoftheCity’sdevelopmentregulationsincludedinTitleIVoftheRMCoranyotherapplicableregulationorobligatestheCitytoapproveproposedimprovementstotheProperty.c.ApplicantagreesthattheProjectwillbecompletedwithinthree(3)yearsfromthedateofapprovalofthisAgreementbytheCouncil,unlessextendedbytheAdministratorforcauseasprovidedinRMC4-1-2201.3.Requirementsfor FinalCertificateofTaxExemption.Applicantmay,uponcompletionoftheProjectanduponissuancebytheCityofatemporarycertificateofoccupancy,orapermanentcertificateofoccupancyifnotemporarycertificateisissued,requestaFinalCertificateofTaxExemption.TherequestshallbeinwritingdirectedtotheAdministratorandbeaccompaniedbythefollowing:a.Astatementofexpendituresmadewithrespecttoeachmulti-familyhousingunitandthetotalexpendituresmadewithrespecttotheentireProjectandProperty;b.Adescriptionofthecompletedworkandastatementofqualificationforthemulti-familyhousingpropertytaxexemption;Multi-FamilyHousingPropertyTaxExemptionAgreementSOLERA2 c. AstatementthattheProjectwascompletedwithintherequitedthree-(3)yearperiodor anyauthorizedextensionanddocumentationthat theProjectwascompletedincompliancewiththetermsofthisAgreement;d.Thetotalmonthlyrentofeachmulti-familyhousingunittentedtodate;e.Theincomeofeachrenter householdtodateatthetimeofinitialoccupancyf.AstatementthattheProjectmeetstheaffordablehousingrequirementsinParagraph5below,alongwiththenumber,type,andspecificmulti-familyhousingunitsrentedtodatetomeet theaffordablehousingrequirements;andg.AnysuchfurtherinformationthattheAdministratordeemsnecessaryorusefultoevaluatethe Project’seligibilityfortheFinalCertificateofTaxExemption.4.AgreementtoIssueFinalCertificateofTaxExemption.TheCityagreestofileaFinalCertificateofTaxExemptionwiththeKingCountyAssessorwithinforty(40)daysofsubmissionbytheApplicantofallmaterialsrequitedbyparagraph3above,ifApplicanthas:a.SuccessfullycompletedtheProjectinaccordancewiththetermsofthisAgreementandRMC4-1-220;b.FiledarequestwiththeCityforaFinalCertificateofTaxExemptionwiththeAdministratorandsubmittedthematerialsdescribedinparagraph3above;c.PaidtheCityafeeintheamountofonethousanddollars($1,000);andd.MetallotherrequirementsprovidedinRMC4-1-220forissuanceoftheFinalCertificateofTaxExemption.5.DurationofthePropertyTaxExemptionSubjecttothetermsofthisAgreementandtherequirementsofRMC4-1-220,the valueofimprovementsqualifyingunderRMC4-1-220isexemptfromadvalorempropertytaxationfortwelve(12)yearssuccessiveyearsbeginningJanuary1stoftheyearimmediatelyfollowingthecalendar yearofissuanceofthefinalcertificateoftaxexemption.Multi-FamilyHousingPropertyTax ExemptionAgreementSOLERA3 Forthedurationofthetwelve(12)-yearexemptionperiod,theApplicantagreestorentatleasttwentypercent(20%)oftheProject’snewmulti-familyhousingunits(i.e.,aminimumofonehundredandeighteen(118))asaffordablehousingtolowincomehouseholdsateightypercent(80%)orlessofmedianincome.TheApplicantmayuseanycombinationofstudio,one(1)-bedroom,two(2)-bedroom,and/orthree(3)-bedroomunitstocomplywiththeminimumtwentypercent(20%)requirementabove.IftheProjectincludesmorethanone(1)buildingwithmulti-familyhousingunits,alloftheaffordablehousingunitsrequiredaboveshallnot belocatedinthesamebuilding.Thefollowingdefinitionsapplytotherequirementsinthisparagraph5:a.“Affordablehousing”meansresidentialhousingthatistentedbyalowincomehouseholdwhosemonthlyhousingcosts,includingrentandutilitiesotherthantelephone,donotexceedthirtypercent(30%)ofthe household’smonthlyincome.b.“Household”meansasingleperson,family,orunrelatedpersonslivingtogether.c.“Lowincomehousehold”meansasingleperson,family,orunrelatedpersonslivingtogetherwhoseadjustedincomeisatorbeloweightypercent(80%)ofthemedianincome.U.‘Medianincome”meansthemedianfamilyincomeadjustedforfamilysizeforKingCounty,asreportedbytheUnitedStatesDepartmentofHousingandUrbanDevelopment(HUD).IntheeventthatHUDnolongerpublishesmedianincomefiguresforKingCounty,theCitymayuseordeterminesuch othermethodasitmaychoosetodeterminetheKingCountymedianincome,adjustedforhouseholdsize.6.AnnualCertificationandReport.Withinthirty(30)daysafterthefirstanniversaryofthedatetheCityissuedtheFinalCertificateofTaxExemptionandeachyear thereafterforthedurationofthetaxexemptionperiodnotedinparagraph5above,ApplicantagreestofileanannualreportwiththeAdministrator.ThereportshallcontainsuchinformationasrequiredbyRCW84.14andastheAdministratormaydeemnecessaryoruseful,andshallataminimumincludethefollowing:Multi-FamilyHousingPropertyTaxExemptionAgreementSOLERA4 a.Astatementoftheoccupancyandvacancyofthemulti-familyhousingunits duringthetwelvemonthsendingwiththeanniversarydate;b.Acertificationthat themulti-familyhousingunits,Project,and Propertyhavenotchangeduse sincethedatetheCityissuedtheFinalCertificateofTaxExemption,c.Astatementthatthemulti-familyhousingunits,Project,andPropertycontinuetobeincompliancewiththisAgreementandtherequirementsofRCW84.14andRMC4-1-220;d.AdescriptionofanyimprovementsorchangestotheProjectmadeaftertheCityissuedtheFinalCertificateofTaxExemption;e.Thetotalmonthlyrentofeachmulti-familyhousingunitrentedorthetotalsaleamountofeachmulti-familyhousingunitsoldtoaninitialpurchaserduringthetwelvemonthsendingwiththe anniversarydate;f.Theincomeofeachrenterhousehold atthetimeofinitialoccupancyandtheincomeofeachinitialpurchaserofowner-occupiedmulti-familyhousingunitsatthetimeofpurchaseduringthetwelvemonthsendingwiththeanniversarydate;g.AcertificationthattheProjecthasbeenandcontinuestobeincompliancewiththeaffordablehousingrequirementsincludedinparagraph5abovesince the datetheCityissuedtheFinalCertificateofTaxExemption;h.Abreakdownofthenumber,type,andspecificmulti-familyhousingunitsrentedorsoldduringthetwelvemonthsendingwiththeanniversarydatetomeettheaffordablehousingrequirementsincludedinparagraph5above;AnyadditionalinformationrequestedbytheCitypursuanttomeetinganyreportingrequirements underRCW84.14;andj.AnysuchfurtherinformationthattheAdministratordeemsnecessaryorusefultoevaluatetheApplicant’scompliancewiththisAgreementandtherequirementsofRCW84.14andRMC4-1-220.7.NoViolationsforDurationofExemption.ForthedurationofthepropertytaxexemptiongrantedunderRMC4-1-220andnotedinparagraph5above,ApplicantagreesthattheProjectandthePropertywillhavenoviolationsofapplicablezoningrequirements,landuseregulations,andbuildingMulti-FamilyHousingPropertyTaxExemptionAgreementSOLERA5 andhousingcoderequirements,includingbutnotlimitedtothedevelopmentregulationsinTitleIVoftheRMC,forwhichtheDepartmentofCommunityandEconomicDevelopmentoritsfunctionalsuccessorshallhaveissuedanoticeofviolation,citationorothernotificationthatisnotresolvedbyacertificateofcompliance,certificateofrelease,withdrawalorotherwise,withinthetimeperiodforcompliance,ifany,providedinsuchnoticeofviolation,citation orothernotificationoranyextensionofthetimeperiodforcompliancegrantedbytheDepartmentofCommunityandEconomicDevelopment.8.NotificationofTransferofInterestorChangeinUse.ApplicantagreestonotifytheAdministratorwithinthirty(30)daysofanytransferofApplicant’sownershipinterestintheProject,thePropertyoranyimprovementsmadetotheProperty.ApplicantfurtheragreestonotifytheAdministratorandtheKingCountyAssessorwithinsixty(60)daysofanychangeofuseofanyorallofthemulti-familyhousingunitsonthePropertytoanotheruse.Applicantacknowledgesthatsuchachangeinusemayresultincancellationofthepropertytax exemptionandimpositionofadditionaltaxes,interest,andpenaltypursuanttoStatelaw.9.CancellationofExemption-Appeal.a.TheCityreservestherighttocanceltheFinalCertificateofTaxExemptionifatanytimethemulti-familyhousingunits,theProject,orthePropertynolongercomplieswiththetermsofthisAgreementorwiththerequirementsofRMC4-1-220,orforanyotherreasonnolongerqualifiesforapropertytaxexemption.b.Ifthepropertytaxexemptioniscanceledfornon-compliance,Applicantacknowledgesthatstatelawrequiresthatanadditionalrealpropertytaxistobeimposedintheamountof:[a}thedifferencebetweenthepropertytaxpaidandthepropertytaxthatwouldhavebeenpaidifithadincludedthevalueofthenonqualifyingimprovements,datedbacktothedatethattheimprovementsbecamenonqualifying;[bJapenaltyof20%ofthedifferencecalculatedunderparagraph(a)ofthisparagraph9;[cJinterestatthestatutoryrateondelinquentpropertytaxesandpenalties,calculatedfromthedatethetaxwouldhavebeenduewithoutpenaltyiftheimprovementshadbeenassessedwithoutregardtotheexemptionsprovidedbyChapter84.14RCWandRMC4-1-220.Applicantacknowledgesthat,pursuanttoRCW84.14.110,anyadditionaltaxowed,togetherwithinterestandpenalty,becomealienonthePropertyandattachatthetimethePropertyorportionofthePropertyisremovedfrommulti-familyhousinguseortheamenitiesnolongermeetapplicablerequirements,andthatthelienhasprioritytoandmustbefullypaidandsatisfiedbeforearecognizance,mortgage,judgment,debt,obligation,orresponsibilitytoorwithwhichthePropertymaybecomechargedorliable.ApplicantfurtheracknowledgesthatRCW84.14.110providesthatMulti-FamilyHousingPropertyTaxExemptionAgreementSOLERA6 anysuchlienmaybeforeclosedinthemannerprovidedbylawforforeclosureofliensfordelinquentrealproperlytaxes.c.Upondeterminingthatataxexemptionistobecanceled,theAdministratorshallnotifythepropertyownerbycertifiedmail,returnreceiptrequested.ThepropertyownermayappealthedeterminationinaccordancewithRMC4-1-220L2.10.Amendments.NomodificationofthisAgreementshallbemadeunlessmutuallyagreeduponbythepartiesinwritingandunlessincompliancewiththeprovisionsofRMC4-1-220H,includingbutnotlimitedtotheApplicant’spaymentofafivehundreddollars($500)contractamendmentfee.11.BindingEffect.Theprovisions,covenants,andconditionscontainedinthisAgreementarebindinguponthepartiesheretoandtheirlegalheirs,representatives,successors,assigns,andsubsidiaries.12.RecordingofAgreement.TheAdministratorshallcausetoberecordedattheApplicant’sexpense,orrequireApplicanttorecord,intherealpropertyrecordsoftheKingCountyDepartmentofRecordsandElections,thisAgreementandanyotherdocumentsaswillidentifysuchtermsandconditionsofeligibilityforexemptionastheAdministratordeemsappropriateforrecording.13.AuditsandInspectionofRecords.Applicantagreestomaintain,retain,andmakeavailableforinspectionuponsevendays’writtenrequestfromtheCity,anyrecordspertainingtothiscontract.ApplicantunderstandsandagreesthattheCityhastherighttoauditorreviewappropriaterecordstoassurecompliancewiththisAgreementandRMC4-1-220andtoperformevaluationsoftheeffectivenessofthemulti-familyhousingpropertytaxexemptionprogram.14.Notices.Multi-FamilyHousingPropertyTax ExemptionAgreementSOLERA7 AllnoticestobegivenpursuanttothisAgreementshallbeinwritingandshallbedeemedgivenwhenhand-deliveredwithinnormalbusinesshours,whenactuallyreceivedbyfacsimiletransmission,ortwobusinessdaysafterhavingbeenmailed,postageprepaid,tothe partiesheretoattheaddressessetforthbelow,ortosuchotherplaceasapartymayfromtimetotimedesignateinwriting.APPLICANT:SoleraManager,LLC10900NE8thSt,Suite1200Bellevue,WA98004Phone:425-278-9023Attention:DavidBRatliff,ManagerCITY:CityofRentonDepartmentofEquity,Housing,andHumanServices1055SouthGradyWayRenton,Washington98055Phone:(425)430-7394Attention:Administrator15.Severability.IntheeventthatanytermorclauseofthisAgreementconflictswithapplicablelaw,suchconflictshallnotaffectothertermsofthisAgreementwhichcanbegiveneffectwithouttheconflictingtermsorclause,andtothisend,thetermsoftheAgreementaredeclaredtobeseverable.Multi-FamilyHousingPropertyTax ExemptionAgreementSOLERA8 INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedayandyearwrittenabove.SLERAMNAGERLLC,AWaingtonimitedLiabilityCompanyBy:David1TIts:ManagerCITYOFRENTONArmondoPavone,MayorAPPROVEDASTOFORM:ATTEST:ShaneMoloney,CityAttorneyJasonSeth,CityClerkMulti-FamilyHousingPropertyTaxExemptionAgreementSOLERA9(approved via email from Patrice Kent)12/14/2021 STATEOFWASHINGTONCOUNTYOFKING)ss.Onthis—dayofb---202(,beforetheundersigned,aNotaryPublicinandforthestateofWashington,dulycommissionedandsworn,personallyappearedbeforemeDAVID,RLTLIFF,tomeknowntobetheManagerofSOLERAMANAGERLLC,thatexecutethewithinandforegoinginstrumentandacknowledgedsaidinstrumenttobethefreeandvoluntaryactanddeedofsaidparty,fortheusesandpurposesthereinmentioned,andonoathstatedthathewasauthorizedtoexecutesaidinstrument.InwitnesswhereofIhavehereuntosetmyhandandaffixedmyofficialsealthedayandyearfirstabovewritten.NOTARYPUBLICPrintedNamet/Residingatd-nctMycommissionexpiresY/9/z.iMulti-FamilyHousingPropertyTaxExemptionAgreementSOLERA10NOTARYPUBLICSTATEOFWASHINGTONKAkENMCOLLINGMyAppointmentExpiresApril09,2023Fnotarvseall MULTI-FAMILYHOUSINGPROPERTYTAXEXEMPTIONAGREEMENTEXHIBITALEGALDESCRIPTIONSOLERABLOCKALEGALDESCRIPTION:RealpropertyintheCountyofKing,StateofWashington,describedasfollows:THATPORTIONOFBLOCKS39AND43,CORRECTEDPLATOFRENTONHIGHLANDSNO.2,ACCORDINGTOTHEPLATRECORDEDINVOLUME57OFPLATS,PAGES92THROUGH98,INCLUSIVE,INKINGCOUNTY,WASHINGTON,DESCRIBEDASFOLLOWS:COMMENCINGATTHESOUTHEASTCORNEROFSAIDBLOCK39;THENCENORTH35°46’47”EAST665.73FEET;THENCENORTH54°18’02”WEST36.98FEETTOTHEPOINTOFBEGINNING;THENCECONTINUINGNORTH54°18’02”WEST181.99FEETTOACURVETOTHERIGHT,HAVINGARADIUSOF15.00FEET;THENCENORTHERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF9000000?,ANARCDISTANCEOF23.56FEET;THENCENORTH35°4158”EAST160.59FEETTOACURVETOTHELEFTHAVINGARADIUSOF124.50FEET;THENCENORTHERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF34°40’Ol”,ANARCDISTANCEOF75.33FEET;THENCENORTH0100157EAST178.18FEETTOACURVETOTHERIGHT,HAVINGARADIUSOF15.00FEET;THENCENORTHEASTERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF90°00’OO”,ANARCDISTANCEOF23.56FEET;THENCESOUTH88°58’03”EAST171.02FEETTOACURVETO THERIGHT,HAVINGARADIUSOF15.00FEET;THENCESOUTHEASTERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF87°49’37’,ANARCDISTANCEOF22.99FEETTOAREVERSECURVETOTHELEFT,HAVINGARADIUSOF361.64FEET;THENCESOUTHERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF3202415h,ANARCDISTANCEOF204.53FEETTOAREVERSECURVETOTHERIGHT,HAVINGARADIUSOF15.00 FEET;THENCESOUTHERLYALONGSAIDCURVE,THROUGHACENRALANGLEOF69°1927”,ANARCDISTANCEOF 18.15FEET;THENCESOUTH35°46’47”WEST357.40FEETTOACURVETOTHERIGHT,HAVINGARADIUSOF15.00FEET;THENCEWESTERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF89°55’12”,ANARCDISTANCEOF23.54FEETTOTHEPOINTOFBEGINNING.SOLERABLOCKBLEGALDESCRIPTION:RealpropertyintheCountyofKing,StateofWashington,describedasfollows:THATPORTIONOFBLOCK39,CORRECTEDPLATOFRENTONHIGHLANDSNO.2,ACCORDINGTOTHE PLATRECORDEDINVOLUME57OFPLATS,PAGES92THROUGH98,INCLUSIVE,INKINGCOUNTY,WASHINGTON,DESCRIBEDASFOLLOWS:COMMENCINGATTHESOUTHEASTCORNEROFSAIDBLOCK39;THENCENORTH54°36’19”WEST90.00FEETTOTHEPOINTOFBEGINNING;THENCENORTH35°46’47”EAST125.00FEET;THENCESOUTH54°36’19”EAST68.00FEET;THENCENORTH35°46’47”EAST466.83FEETTOACURVETOTHE LEFTHAVINGARADIUSOF15.00FEET;THENCENORTHERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF90°04’48”,ANARCDISTANCEOF23.58FEET;THENCENORTH54°1802”WEST181.86FEETTOACURVETOTHELEFT,HAVINGARADIUSOF15.00FEET;THENCEWESTERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF90°00’OO”,ANARCDISTANCEOF23.56FEEET;THENCESOUTH35°41’59WEST390.30FEET;THENCESOUTH35°1913”WEST193.66FEETTOACURVETOTHELEFT,HAVINGARADIUSOF15.00FEET;THENCESOUTHERLYALONGSAIDCURVE,THROUGHACENTRALANGLEOF66°26’43”,ANARCDISTANCEOF 17.40FEET;THENCESOUTH54°36’19”EAST127.96FEETTOTHEPOINTOFBEGINNING.