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Home My WebLink About21-081 - Contract - Holden at Southcenter, LLC - Multi-Family Residential Property Tax Exemption AgreementInstrument Number: 20210816001162 Document:AG Rec: $217.50 Page -1 of 15 Record Date:8/16/2021 1:46 PM Electronically Recorded King County, WA Return Address: Tukwila City Clerk 6200 Southcenter Blvd. Tukwila, WA 98188 ATTN: Brandon Miles Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet (RCW65.04) Document Title(s) (or transactions contained therein): (all areas applicable to your document must be filled in) 1. Multi -Family Residential Property Tax Exemption Agreement 2. 3. 4. Reference Number(s) of Documents assigned or released N/A Additional reference Ws on page of document Grantor(s) Exactly as name(s) appear on document 1. City of Tukwila, a non -charter, optional code city 2. Additional names on page ___ of document. Grantee(s) Exactly as name(s) appear on document 1. Holden at Southcenter, LLC 2. Additional names on page of document. Legal description (abbreviated: i.e. lot, block, plat or section, township, range) ANDOVER INDUSTRIAL PARK # 1 S 28 FT OF 4 & N 200 FT OF 5 LESS ST HWY Additional legal is on page of document. Assessor's Property Tax Parcel/Account Number ❑ Assessor Tax # not yet assigned 022300-0045 The Auditor[Recorder will rely on the information provided on this form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. "I am signing below and paying an additional $50 recording fee (as provided in RCW 36.18.010 and referred to as an emergency nonstandard document), because this document does not meet margin and formatting requirements. Furthermore, I hereby understand that the recording process may cover up or otherwise obscure some part of the text of the original document as a result of this request." Signature of Requesting Party Note to submitter: Do not sign above nor pay additional $50 fee if the document meets margin/formatting requirements Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA - Record _-__-_- - '------'—� _ —~�, ,.-- 21'O81 Council Approval N/A Ille .11110-00101 Valf.37601,44k, THIS AGREEMENT /« ent") is entered into this 21st dayof_May 2021, by and between the City ofTukwila, Washington /the "City"), a non -charter, optional code city organized under the laws of the State of Washington, and Holden at 3outhceote[ LLC /the "Property Owner"). WHEREAS, the City desires tO 8DCOUr88e increased residential opportunities and to stimulate the construction Ofnew multi -family housing within a portion of the City's Tukwila Urban Center -TraDsit Oriented Development /TUC-TOD\ zoning district; and WHEREAS, Chapter 84.14 RCVV permits cities to designate n residential targeted area for certain property tax exemptions; and WHEREAS, on December 1, 2014, the Tukwila City Council adopted City Council Ordinance No. 2462 (as amended by Ordinance 2538), enacting a limited property tax exemption for eligible OnUiti-faD1||y development projects within the City's designated r2Sid8D1iG1 target area, located within the Tukwila Urban Center - Transit Oriented Development (TUC-TOD) zoning district; and WHEREAS, the Property 0xVDer owns 8 parcel located at 112 Andover Park East /"the Property"\within the residential targeted area; and UUBEWE/\S/ the Property Owner is constructing a residential or [nixed -Use development project on the Property which will include multi -family residential units (the "Project"); and WHEREAS, in connection with the Project, the P[OpenLyOVVD2F has submitted a complete application for the City's multi -family tax exemption in accordance with Chapter 3.90 of the Tukwila Municipal Code /TMQand WHEREAS, the City has determined that the Project meets the eligibility criteria for issuance of a Conditional Certificate of Acceptance of Tax Exemption ("Conditional Certificate") for the multi -family tax exemption /"K4FTE"\; and VVMEREAS.TK4C 3.90.070(A) requires the Property Owner to enter into an agreement with the City regarding the terms and conditions ofthe Project ande|igib||itvforthernu!ti-farnj|ytax exemption prior toissuance ofaConditional Certificate; NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, the City and the Property Owner mutually agree as Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA - Record _-__-_- - '------'—� _ —~�, ,.-- Section 1: Definitions Un|ess otherwise specified in this document, the terms in this Agreement shall be interpreted consistent with the definitions contained in Tukwila Municipal Code ("TMC") Section 3.90.20. Section 2: Property 01A�� A. The Property DvvUer will construct on the Property a residential or mixed-use project substantially consistent with the plans depicted in the attached Exhibit A, which is incorporated herein by this [efen2DC8. Construction shall be considered substantially consistent for the purposes of this Agreement if, at a UliDiDlUn1, construction of the Project meets the following requirements: L The residential units must be located within the residential targeted area, as defined in TMC 3,90,030; ii The residential units must have an average size of at least five hundred (500) square feet per unit; iii. A [niDinoVDl of a least four dwelling units shall be constructed in either a mixed use or residential building; iv. A minimum of fifteen percent (15%) of the residential units must be at least nine hundred /9OO\square feet and contain atleast two bedrooms; v. The residential units must be designed and used for permanent residential occupancy as defined buTMC 3,9O.O2OA\; vi. Each residential unit must have its own private bathroom and a private kitchen. Units that utilize common kitchens or shared bathrooms are not eligible for the multi -family residential property tax exemption; and Vii. The Project shall comply with all applicable ZODiDg requirements, land Use regulations, environmental requirements, building codes and fire code r2qUin2[DeDLS, as outlined in the TMC. B. Construction of the residential units must be completed and receive City -issued o certificate of occupancy, within three (3) years from the date of issuance of the Conditional Certificate by the City, or within authorized extension limits. C. After completion of construction of the Project and issuance of a permanent certificate of occupancy for the residential UO|1s' but before expiration of the Conditional Certificate, Property Owner shall request Final Certificate and file with the City's Economic Development Administrator ("Administrator") the following supporting information: L A statement of expenditures made with respect to each multi -family housing unit, including phasing if applicable, and of the total expenditures made with respect to the entire Property; ii. Adescription ofthe completed work and astatement ofqualifications for the exemption; iii. Astatement that the work was completed inthe timeframe outlined inSection 2.Bofthis Agreement, or within the time limit of any approved extension granted pursuant to TMC Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _—__—_— — '—-----'—� _ —~�, ,.-- k. Information that the Administrator deems necessary and useful in order to evaluate the eligibility for the Final Certificate. A. The City will issue aConditional Certificate for the Project vvithin45 days ofmutual execution of this Agreement. The Conditional Certificate shall expire three /3\ years from the date of issuance unless aDextension isgranted under Chapter 3.9OTMC. B. Within thirty (30) days of receipt of all materials set forth in Section 2.C.Hv of this Agreement and 8 request f[oOO Property Owner for a Final Certificate, the Administrator shall determine whether the completed Project is: consistent with the Property Owner's application, consistent this Agreement, and qualified for limited exemption under Chapter 84.14 RCW, in addition to which specific improvements completed meet the requirements of this chapter and the required findings of RCVV 84.14.060. If the Administrator determines that the Projected completed meets said requirements, the requirements of Chapter 3.90 TMC, and the required findings of RCVV 84.14.060/ the Administrator shall file a Final Certificate with the King County Department OfAssessments. The Final Certificate must be filed with the King County Assessor nolater than 4Odays after the City's receipt ofall materials required for the FiDa| Certificate underTIVIC 3.90.090(A). C. The King County Department of Assessments sha|l be responsible for determining the allocation of the Property's assessed value to be attributed tothe multi -family portion of the A. Within thirty i30\ days of each anniversary of the filing date of the Final Certificate and for each year of the tax exemption period, the Property Owner shall submit to the Administrator anotarized declaration containing the following: L A statement identifying the total number of occupied and vacant multi -family units during the previous year; ii. A certification that the property has not changed use since the date of filing of the Final Certificate and continues to be in compliance with this Agreement, Chapter 3.90 TIVIC, iii. A description of any improvements or changes to the property made after the filing ofthe Final Certificate or after the last declaration, as applicable; iv. The value of tax exemption for the Project; and v. Any other information with respect to the units receiving a tax exemption necessary for the City tocomply with any reporting requirements hmthe State ofWashington and/or King County. B. The Property Owner shall maintain records supporting all information provided to the City and shall make such records available for inspection upon request by the City. Additionally, Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _—__—_— — '—-----'—� _ —~�, ,.-- pri0r notice, to ensure the COnbUUed 0ODlpU3DC2 with 8ppUC8b]8 ZODiOg requirements, land use regulations, building codes, fire codes, and housing codes asrequired bvthe TMC. C. Failure tosubmit the annual declaration osrequired bySection 4+4ofthis Agreement, urbm maintain adequate records, may result in cancellation of the tax exemption in accordance with Section 8 herein. Section 5: Conversion of Residential Units |fthe Property Owner converts any Ofthe multi -family residential housing units subject tOthis Agreement to another Use, the Property DvVDer shall notify the King County Department of Assessment and the Administrator within sixty /GO\days Vfsuch change inuse, Upon such change iDuse, the tax exemption shall becancelled pursuant toSection 8herein. Section If Property Owner transfers its entire legal interest in the Property, or in the improvements made to the Property subject tO this Agreement, Property Owner shall assign its rights, interests, and obligations under this Agreement tothe succeeding owner. Property Owner shall then notify the City of said transfer and assignment within thirty /30\ days. Failure to notify the City of said transfer or assignment, as required by this section, shall constitute grounds to terminate this Agreement bythe City pursuant tnSection 9herein, Section 7: Duration of Exemption The value of the improvements qualifying under this Agreement will be exempt from ad valorem property tax for eight (8) years beginning January 1 Of the year immediately following the calendar year ofissuance ofthe Final Certificate. Section 8: Cancellation by City The City will cancel the Final Certificate for any property or individual unitthat no longer complies with any of the terms and conditions of this Agreement or with the requirements of Chapter 3.90 TIVIC. Cancellation of the Final Certificate will subject the Property Owner (or any future property owner) tOadditional taxes, interest and penalties 3Sfurther described [DChapter Q4.14RCVVand TIVIC 3.90.100.H. Upon determining that a tax exemption shall be cancelled, the Administrator shall notify the Property Owner ofsaid cancellation by certified mail, return receipt requested. The Property Owner may appeal the cancellation determination as specified in TIVIC 3.90.100.1-1 within 3Odays ofthe date ofnotice ofcancellation. Section 9: General Provisions A. Termination L Automatic Termination. This Agreement Sh3|| 8u1onl8tioBl}y terminate Upon the expiration ofthe eight-year tax exemption, asoutlined in Section 7herein. ii. Termination by CitV. The City may terminate this Agreement 3tanytime under any ofthe following circumstances: Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _—__—_— — '—-----'—� _ —~�, ,.-- I. The Property Owner obtained the property tax exemption under deceit or false pretenses, including providing incorrect or inadequate information to the Cho regarding the intended use ofthe building onthe property; 2. The Project nulongeruon1pliesvviththerequi[ennentsufChapter3.9OTK4{;or 3. The Final Certificate iscancelled pursuant toSection 8herein; and 4. Property Owner fails to substantially comply with the terms of this Agreement. iii. Termination bv Propertv Owner. The Property Owner may terminate its rights and obligations under this Agreement byproviding 3Ddays' written notice tOthe City. iv. Termination Effect on Final Certificate. |fthis Agreement isterminated for any reason, the City shall automatically cancel any Final Certificate that may have been issued tothe Property Owner for the Project, Cancellation of the Fina/ Certificate will subject the Property Owner (or any future property owner) to additional taxes, interest and penalties as further described in Chapter 84.14 RCW and TIVIC 3.90.100.H. The Property Owner may appeal the cancellation determination as specified inTIVIC 3.90.100.1-1 within 30 days of the date Ofnotice ofcancellation. B. Potential Tax Liability. The Property Owner acknowledges and agrees that, regardless of the reason therefor, termination of this Agreement may subject Property Owner to potential tax liabilities and penalties under state law. C. King County Assessment Fee, King County Assessment charges a fee for the review and processing of MFTE application requests. The Property Owner shall either pay this fee directly to King County orreimburse the City for payment ofthis fee. D. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws ofthe State 0fWashington. Venue for any action arising under this Agreement shall lie inKing County Superior Court. E. Compliance with Tukwila Municipal Code. The Property Owner shall ensure that the site and Project comply with all applicable sections ofthe Tukwila Municipal Code, including, but not limited to, the zoning code, sign code, building code, fire code, and public works standards. |f the event of conflict between this Agreement and any provision of the Tul(xvi|a Municipal Code, the more stringent requirement shall govern. Additionally, this Agreement shall not be interpreted to prevent the City from enforcing any provisions of the Tukwila Municipal Code as currently written or amended. Norshall the Agreement preclude the Property Ownerfrom pursuing any administrative appeals or rights permitted under applicable provisions of the Tukwila Municipal Code. F. Assignability. Except as 81loYV8d in Section 6 of this Agreement, neither party may assign its rights, interests, orobligations under this Agreement. G. Recording. Upon execution ofthis Agreement by both parties, the Property DvvOa[ shall record this Agreement with the King County Recorder's Office and provide 3 copy of the recorded document tothe City. H. Indemnification. The Property Owner shall indemnify, defend, and hold harmless the City, its officers, officials, employees, and volunteers from any and all claims, injuries, damages, losses Instrument Number: 20210816001162 DocKU00ent:AG Rec: $217.50Pof 15 ��U��/ �/�� 1:46 PM County, WA - Record _-__-_- - '------'—� _ —~�, ,.-- o[suitsarisiM#oUtVforr8SUltingƒro[ntheacts,erno[sOFO[nbsiODs8fthePn3pe[t/OVVDe[iO performance ofthis Agreement. |. Attorney Fees. In the event a lawsuit is filed regarding the subject matter of this Agreement, the prevailing party shall beentitled topayment ofattorneys' fee bythe other party. J. NoThird'PartyBeneficlaries. This Agreement iafor the benefit Ofthe Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights VVh8tsO8Ve[ under this Agreement. No other person or entity not a Party tothis Agreement may enforce the terms and provisions ofthis Agreement. K. Severability. The provisions ofthis Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section/ or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. L. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendments are in writing. M. Notices. Unless otherwise specified in this Agreement, notices, demands, and correspondence between the City and Property Owner shall be deemed sufficiently given if dispatched by pre -paid first-class mail tothe addresses of the parties as designated in this Section. The parties hereto may, from time to time, advise the other ofnew addresses for such notices, demands Drcorrespondence. To Propertv Owner: HOLDEN ATS3UTHCENTER,LLC 19OONNorthlakeWay, Suite 237 Seattle, WA98115 Attn: Jeremiah ]oiiooeur With a ggpy To. DentonsUSLLP 2OOOW4cKinneyAvenue, Suite 19OO Dallas, Texas 752Dl Attn: Toni Weinstein To City: City ofTukwila Office Ofthe City Clerk 520OSVUthuePteFBlvd Tukwila, \NA8818A Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -8 of 15 Record Date:8/16/2021 1:46 PM King County, WA With a Copy To: City of Tukwila Office of Economic Development 6200 Southcenter Blvd Tukwila, WA 98188 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the dates set forth below: CITY OF TUI<W1 LA ... ... 7'2 .. . ....... By: Allan Ekberg, Mayor 05/21/2021 APPROVED AS TO FORM: By Office of the City Attorney ATTEST: ByI �6r%rc`QCy ��,�'�Cczfze�t ty l City Clerk HOLDEN AT SOUTHCENTER, LLC By: Jeremiah Jolicoeur - Member Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -9 of 15 Record Date:8/16/2021 1:46 PM King County, WA LEVEL 1 # OF RESIDENTIAL UNITS 0 RESIDENTIAL UNIT TOTAL SQ FT 0 RESIDENTIAL AMENITY SQ FT 7,957 RESIDENTIAL CIRCULATION & SERVICE SO FT 6,708 RESIDENTIAL TOTAL SQ FT 14,665 U R B A L 0? ARCHITECTURE URBAN I RURAL S.dlk vo.%9aw 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 1 1" = 40'-0" 12/10/2019 12:43:25 PM Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -10 of 15 Record Date:8/16/2021 1:46 PM King County, WA LEVEL # OF MEMORY CARE UNITS 27 MEMORY CARE UNIT TOTAL SQ FT 11,680 MEMORY CARE AMENITY SQ FT 3,377 MEMORY CARE CIRCULATION & SERVICE SO FT 3,887 MEMORY GARS TOTAL SQ FT 18,944 U R B A L 09 ARCHITECTURE URBAN I RUR AL. 1939 A— —E-1 v0A9MM 0vAM5w&0)wx'-lm com 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 2 1" = 40'-0" 9 M161-1�1*0. 1 12/10/2019 12:43:26 PM Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -11 of 15 Record Date:8/16/2021 1:46 PM King County, WA I FVFl .1 # OF RESIDENTIAL UNITS 23 RESIDENTIAL UNIT TOTAL SQ FT 15,809 RESIDENTIAL AMENITY SQ FT 105 RESIDENTIAL CIRCULATION& SERVICE SQ FT 3,149 LRESIDENTIAL TOTAL SQ FT 19,063 U R B A L 49 h Mt,49-040, HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 3 1" = 40'-0" 12/10/2019 12:43:27 PIVI Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -12 of 15 Record Date:8/16/2021 1:46 PM King County, WA -J�- - -- INATPA IV, # OF RESIDENTIAL UNITS 23 RESIDENTIAL UNIT TOTAL SQ FT 15,809 RESIDENTIAL AMENITY SO FT RESIDENTIAL CIRCULATION &SERVICE SOFT 105 3,146 RESIDENTIAL TOTAL SQ FT . 19,060 U R BA L 69 ARCHITECTURE URB AN I RUR A L S..tik, WA9a'W I M-W-wa 112 ANDOVER PARK EAST, TU KWI LA, WA 98188 LEVEL 4 1" = 40'-0" 12/10/2019 12:43:28 PIVI Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -13 of 15 Record Date:8/16/2021 1:46 PM King County, WA # OF RESIDENTIAL UNITS 19 RESIDENTIAL UNIT TOTAL SQ FT 12,459 AMENITY SQ FT 1,522 -RESIDENTIAL RESIDENTIAL CIRCULATION &SERVICE SQ FT 2,961 RESIDENTIAL TOTAL SQ FT 16,942 U R B A L 40 ARCHITECTURE UP. BAN I RURAL 1018 F,iM.. A-Fi.1 S.OA4 WA9M HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 5 I" = 40'-0" 12/10/2019 12:43:28 PIVI Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -14 of 15 Record Date:8/16/2021 1:46 PM King County, WA LEVEL 6 # OF RESIDENTIAL UNITS 21 RESIDENTIAL UNIT TOTAL SQ FT 13,893 RESIDENTIAL AMENITY SQ FT 105 RESIDENTIAL CIRCULATION& SERVICE SQ FT 2,943 RESIDENTIAL TOTAL SQ FT 16,941 UR B A L00 ARCHITECTURE URB AN I RUR AL S.Olk srvw�.uhaluClBscl us rasa � MI-Al-e0a HOLDEN AT SOLITHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 6 1" = 40'-0" 12/10/2019 12:43:29 PIVI Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -15 of 15 Record Date:8/16/2021 1:46 PM King County, WA -J�- -- - I FVFl 7 # OF RESIDENTIAL UNITS 21 RESIDENTIAL UNIT TOTAL SQ FT 13,893 RESIDENTIAL AMENITY SQ FT RESIDENTIAL CIRCULATION& SERVICE SQ FT 2,943 RESIDENTIAL TOTAL SQ FT 16,941 U R B A L.49 ARCHITECTURE UP BAN I RUR At. 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 7 I" = 40'-0" 12/10/2019 12:43:30 PIVI