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HomeMy WebLinkAboutA 20090601001081 • -h AFTER RECORDING, MAIL TO: City Clerk's Office 20090601001081 City of Renton CITY OF RENTON AG 54.00 1055 S GradyWayPAGE001 OF 013 08/01/2009 12:48 Renton, WA 98057 KING COUNTY, WA DOCUMENT TITLE: MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR LIBERTY SQUARE APARTMENTS REFERENCE NUMBER(S) OF DOCUMENTS ASSIGNED OR RELEASED: N/A GRANTOR: RENTON FIFTH AND WILLIAMS LIMITED PARTNERSHIP GRANTEE: CITY OF RENTON LEGAL DESCRIPTION (abbreviated): LOTS 11 THROUGH 17, INCLUSIVE, BLOCK 27, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING COUNTY, WASHINGTON. ASSESSOR'S PROPERTY TAX PARCEL/ACCOUNT NUMBER(S): 7231502430 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. Multi-Family Housing Property Tax Exemption Agreement Recording Cover Sheet Liberty Square Apartments • MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR LIBERTY SQUARE APARTMENTS THIS AGREEMENT is entered into this c9 qday of .� , 2009 by and between RENTON FIFTH AND WILLIAMS LIMITED PARTNE � 'HIP (hereinafter referred to as the "Applicant"), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the "City"). Recitals. 1. Applicant has applied to the City for a limited property tax exemption as provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Center Downtown (CD) zone as part of the Downtown residential targeted area and the Department of Community and Economic Development Administrator has approved the application; and 2. Applicant has submitted to the City preliminary site plans, floor plans, and elevations for the Liberty Square Apartments with ninety two (92) new multi- family housing units (hereinafter referred to as the "Project") on property located at 415 and 417 Williams 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 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 4-1-2201. Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 1 • • •2. Agreement to Construct Multi-Family Housing. a. Applicant agrees to construct the Project on the Property substantially as described in the site plans, floor plans, and elevations on file with the City's Department of Community and Economic Development or its functional successor (hereafter referred to as "Department") as of the date of the City Council's approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than thirty (30) new multi-family housing dwelling units designed for permanent residential occupancy, nor shall permanent residential housing comprise less than fifty percent (50%) of the gross floor area of the mixed-use project constructed pursuant to this Agreement." b. Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City's development regulations in Title IV of the RMC and the City's applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City's development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c. Applicant agrees that the Project will be completed within three (3) years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-2201. 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 YTax Exemption Agreement Liberty Square Apartments 2 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; 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 rented 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 itt thematerials described inparagraph 3 above; the Administrator and submitted , 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 rent at least twenty percent (20%) of the Project's new multi-family housing units (i.e., a minimum of nineteen (19) new multi-family housing units) as affordable housing to low income households at eighty percent (80%) or less of median income. Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 3 The Applicant may use any combination of studio, one (1)-bedroom, two (2)- bedroom, and/or three (3)-bedroom units to comply with the minimum twenty percent (20%) requirement above. If the Project includes more than one (1) building with multi-family housing units, all of the affordable housing units required above shall not be located in the same building. The following definitions apply to the requirements in this paragraph 5: a. "Affordable housing" means residential housing that is rented by a low income household whose monthly housing costs, including rent and utilities other than telephone, do not exceed thirty percent (30%) of the household's monthly income. 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, Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 4 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. 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; 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. Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 5 • 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: [i] 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; [ii] a penalty of 20% of the difference calculated under paragraph [i] of this paragraph 9.b; [iii] 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. 10. Amendments. Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 6 No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant's payment of a five hundred dollars ($500) contract amendment fee. 11. Binding Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 12. Recording of Agreement. The Administrator shall cause to be recorded at the Applicant's expense, or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13. Audits and Inspection of Records. Applicant understands and agrees that the City has the right to audit or review appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to perform evaluations of the effectiveness of the multi-family housing property tax exemption program. Applicant agrees to make appropriate records available for review or audit upon seven days written notice by the City. 14. Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when hand-delivered within normal business hours, when actually received by facsimile transmission, or two business days after having been mailed, postage prepaid, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. APPLICANT: Kantor, Taylor, Nelson and Boyd PC 1501 Fourth Avenue, Suite 1610 Seattle, WA 98101 Phone: (206) 625-9898 Fax: (206) 625-9941 Attention: Mark Kantor CITY: City of Renton Department of Community and Economic Development Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 7 • 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. Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. RENTON FIFTH AND WILLIAMS LIMITED PARTNERSHIP A Washington Limited Partnership By: Renton Fifth and Williams, LP, a Washington Limited Partnership By: DASH Development LLC, a Washington Corporation, its general partner By: Downtown Action to Save Housing, a Washington non-profit corporation, its sold mer and manager By: Todd R. ennett, DASH Board Chair and President CITY OF RENTON De.„LAW— Denis Law, Mayor APPROVED AS TO FORM: ATTEST: aret-440,41/444.„e761;664-....41__ _411 C114 City Attorney Jas•n A. Seth, Deputy City Clerk Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 9 • • STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this 11 day of ) a , 200 41 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Todd R. Bennett, to me known to be the Board Chair and President of Downtown Action to Save Housing 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. / /,.J, �• isao. NOTARY PUBLIC e <(% +4."7e Printed Name: pe-Vi'c_ . 1e ‘.\ 5:710 NOjp?y N - Residing at evnd5 e►• to.' PUBLIC My commission expires en •11- 2D)S 4' h,Wist.0 [notary seal] Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING On this r day of , 200 9 , before the undersigned, a Notary Public in and for the sta f Washington, duly commissioned and sworn, personally appeared before me Denis Law, to me known to be the Mayor of the City of Renton, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. ``�► -$, ,\ssIONF ,o NOTA Y PUBLI oT +A•:�` Printed Na \_ -� � �. ;• N aRy gym• Residing at • cJ -V ' BLIC :•_ My commission expires 8'I., am U OF.... 11111 I [notary seal] Multi-Family Housing Property Tax Exemption Agreement Liberty Square Apartments 11 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION Lots 11 through 17, inclusive, block 27, 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 of said lots conveyed for alley purposes by deeds recorded under recording numbers 910203 and 910204, situate in the City of Renton, County of King, State of Washington. (Also known as adjusted parcel A, city of Renton, lot line adjustment number LUA-00- 168-LLA, recorded under recording number 20020502900015, in King County, Washington. Multi-Family Housing Property Tax Exemption Agreement Exhibit A—Legal Description Liberty Square Apartments