HomeMy WebLinkAboutA 20160609000075 I
AFTER RECORDING, MAIL TO:
City Clerk's Office
City of Renton z0160609000075
1055 S Grady Way PAGE-003ROFT011AG 83.ee
Renton, WA 98055 KING9COUNTY10�A5
DOCUMENT TITLE: MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION
AGREEMENT FOR THE LOFTS AT SECOND AND MAIN
REFERENCE NUMBER(S) OF DOCUMENTS ASSIGNED OR RELEASED: N/A
Gi�AiV�'flR: AQUARIUS GLOBAL LLC
GRANTEE: CITY OF RENTON
LEGAL DESCRIPTION (abbreviated):
LOTS 16 THROUGH 20, INCLUSIVE, BLOCK 13, TOWN OF RENTON, ACCORDING
TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE(S) 135, IN
KING COUNTY, WASHINGTON.
ASSESSOR'S PROPERTY TAX PARCEL/ACCOUNT NUMBER(S):
7231501230
7231501235
7231501240
7231501245
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
The Lofts at Second and Main �
MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION
AGREEMENT FOR THE LOFTS AT SECOND AND MAIN
S x"
THIS AGREEMENT is entered into this � day of �U-�..-� , 2016 by
and between AQUARIUS GLOBAL LLC, a Washington limited liability company
(hereinafter referred to as the "ApplicanY'), 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 powntown (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 Lofts at Second and Main with one hundred and one (101)
new multi-family housing units to be constructed as part of a mixed-use project
(hereinafter referred to as the "Project") on property located at 207 — 219 Main
Avenue S, 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 Acceqtance 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
The Lofts at Second and Main �
2. Aareement to Construct Multi-Familv Housina.
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. Reauirements 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
The Lofts at Second and Main 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; 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. Aqreement to Issue Final Certificate of Tax Exemption.
The City agrees to file a Final Certificate of Tax Exemption with the King County
Assessor within forty (40) days of submission by the Applicant of all materials required
by paragraph 3 above, if Applicant has:
a. Successfully completed the Project in accordance with the terms of this
Agreement and RMC 4-1-220;
b. Filed a request with the City for a Final Certificate of Tax Exemption with
the Administrator and submitted the materials described in paragraph 3 above;
c. Paid the City a fee in the amount of one thousand dollars ($1,000); and
d. Met all other requirements provided in RMC 4-1-220 for issuance of the
Final Certificate of Tax Exemption.
5. Duration of the Proqertv 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 Reaort.
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:
Multi-Family Housing Property Tax Exemption Agreement
The Lofts at Second and Main 3
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 ApplicanYs compliance with this Agreement and the requirements
of RCW 84.14 and RMC 4-1-220.
7. No Violations for Duration of Exemqtion.
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
The Lofts at Second and Main 4
8. Notification of Transfer of Interest or Chanqe in Use.
Applicant agrees to notify the Administrator within thirty (30) days of any transfer
of ApplicanYs 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.
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,
Multi-Family Housing Property Tax Exemption Agreement
The Lofts at Second and Main 5
including but not limited to the ApplicanYs payment of a five hundred dollars ($500)
contract amendment fee.
11. Bindina 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. Recordinq of Aareement.
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.
Multi-Family Housing Property Tax Exemption Agreement
The Lofts at Second and Main 6
APPLICANT:
Aquarius Global LLC
11747 NE 1S` Street, Suite 300
Bellevue, WA 98005
Phone: 425-451-8188 Fax: 425-451-8498
Attention: James G.S. Hwang, Managing Member
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. Severabilitv.
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
The Lofts at Second and Main 7
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
and year written above.
AQUARIUS GLOBAL LLC, A Washington Limited Liability Company
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By: James G.S. Hwan
Managing Membe�
Aquarius Global LLC
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Multi-Family Housing Property Tax Exemption Agreement
The Lofts at Second and Main 8
STATE OF WASHINGTON )
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COUNTY OF KING )
On this "�3��� day of (�'�q�/ , 201 f� , before the
undersigned, a Notary Public in and for the state of Washington, duly commissioned
and sworn, personally appeared before me James G.S. Hwang, to me known to be the
Managing Member of Aquarius Globai 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.
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Multi-Family Housing Property Tax Exemption Agreement
The Lofts at Second and Main 9
MULTI-FAMILY HOUSING PROPERTY
TAX EXEMPTION AGREEMENT
EXHIBIT A
LEGAL DESCRIPTION
LOTS 16 THROUGH 20, INCLUSIVE, BLOCK 13, PLAT OF THE TOWN OF RENTON,
ACCORDING TO THE PLAT RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN
KING COUNTY, WASHINGTON;
EXCEPT THE WEST 5 FEET OF SAID LOT 16 DEEDED TO THE CITY OF RENTON
BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO.
7905070629;
AND EXCEPT THE WEST 5 FEET OF SAID LOT 17 DEEDED TO THE CITY OF
RENTON BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING
NO. 7905070628.
SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON.
Multi-Family Housing Property Tax Exemption Agreement
Exhibit A—Legal Description
The Lofts at Second and Main i