HomeMy WebLinkAbout2026 - Multi-Family Residential Property Tax Exemption Agreement - Mas Tukwila, LLC - 20260324000017Instrument Number: 20260324000017 Document:AG Rec: 5311.50 Page -1 of 9
Record Datc:3/24/2026 8:12 AM
Electronically Recorded King County, WA
Return Address:
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03,411111 WOMW M -11 W
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Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet (RCW 65.04)
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.
Reference Number(s) of Documents assigned or released:
Additional reference #'s on page of document
Grantor(s) Exactly as name(s) appear on document
1. City of Tukwila
2.
Additional names on page of document.
Grantee(S) Exactly as name(s) appear on document
1. Mas Tukwila LLC
2.
Additional names on page of document.
Legal description (abbreviated: i.e. lot, block, plat or section, township, range)
PARCEL "A" CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO L16-0075
RECORDING NO 20170501900005 (BEING A PORTION OF NW QTR SE QTR STR 03-22-04)
Additional legal is on page 8 of document.
Assessor's Property Tax Parcel/Account Number ❑ Assessor Tax # not yet assigned
0322049062
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
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Instrument Number: 20260324000017 Document:AG Rec: $311.50 Page -2 of 9
Record Date:3/24/2026 8:12 AM King County, WA
MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION AGREEMENT ("Agreement")
BY
r,
11"Aiw6m 1
THIS AGREEMENT (-Agreement") is entered into this 8th day of IA!jum 2026, by and
between the City of Tukwila, Washington (the "City"), a non -charter, optional code city
organized under the laws of the State of Washington, and Mas Tukwila LLC.
WHEREAS, the City desires to encourage increased residential opportunities and to stimulate
the construction of new multi -family housing within a portion of the City's Tukwila Urban Center
- Transit Oriented Development (TUC-TOD) zoning district; and
WHEREAS, Chapter 84.14 RCW permits cities to designate a 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 Nos. 2538, 2665, and 2707) and as codified in chapter 3.90
of the Tukwila Municipal Code ("TMC")), enacting a limited property tax exemption for eligible
multi -family development projects within the City's designated residential target area; and
WHEREAS, the Property Owner owns a parcel located at 20230 Orillia Rd STukwila, WA 98032
("the Property") within the residential targeted area; and
WHEREAS, the Property Owner is constructing a residential all ages housing project on the
Property that will Include multi -family residential units (the "Project"); and
WHEREAS, in connection with the Project, the Property Owner has submitted a complete
application for the City's multi -family tax exemption in accordance with Chapter 3.90 TMC; and
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
m u Ifl-fa m I ly tax exemption ("M FTE"); a n d
WHEREAS, TMC 3.90.070(A) requires the Property Owner to enter into an agreement with
the City regarding the terms and conditions of the Project and eligibility for the multi -family tax
exemption prior to issuance of a Conditional 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
follows:
Section 1: Definitions
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Unless otherwise specified in this document, the terms in this Agreement shall be interpreted
consistent with the definitions contained in Tukwila Municipal Code ("TIVIC") Section 3.90.020.
Section 2: Property Owner's Obligailons
A. The Property Owner VWU construct OO the Property a residential project substantially
consistent with the plans depicted inthe attached Exhibit A,which iaincorporated herein bv
this reference. Construction oho|| be considered substantially consistent for the purposes of
this Agreement if, at a minimum, construction of the Project meets the following
requirements consistent with TMC 3.9O,USO:
|. The residential UO|tS OlUSt be located within the [eSidBDt|8| targeted area, as defined in
TMC 3.90.020
|i. The residential units must have an average size of at least five hundred (500) square feet
per unit;
iii. Anlinirnurn of at least four dwelling units mhe|| 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
(9UU) square feet and contain atleast two bedrooms;
v. To promote workforce housing, the residential units must be designed and used for
permanent residential occupancy, made available toresidents ofall ages;
vi. Each residential unit must have its own private bathroom and a private kitchen. Units that
utilize COn)nnon kitchens or shared bathrooms are not eligible for the DlU|ti-fGr0i|y
residential property tax exemption; and
vii. The Project shall comply with all applicable zoning requirements, land use regulations,
environmental requirements, building codes and fire code requirements, as outlined in
the Chapter S.9OTMC and state law.
B. Construction ofthe residential units must becompleted and receive a City -issued certificate
of occupancy VV|LhiD three (3) years from the date Of issuance of the Conditional Certificate
by the City, or within authorized extension l|Dl|tS.
C. After completion of construction of the Project and issuance of a permanent certificate of
occupancy for the residential units, but before expiration of the Conditional Certificate,
Property Owner shall request Final Certificate and file with the City's Economic Development
Administrator /"/\dnoinistratVr"\the following supporting information:
L A statement of expenditures made with respect to each nlW|Li-faDli|y hVV5)Dg unit,
|DdUdiDg phasing if applicable, and of the LVtJ| expenditures made with respect to the
entire Property;
ii. A description of the completed work and a statement ofqualifications for the exemption;
iii. A statement that the work was completed in the timeframe outlined in Section 2.13 of this
Agreement, or within the time limit of any approved extension granted pursuant to TMC
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iv. Information that the Administrator deems necessary and useful in order to evaluate the
Property's eligibility for the Final Certificate.
Section 3: City Obligations
A. The City will issue aConditional Certificate for the Project VVkhiD45daysDfnluLuGl eXgcUtkJD
mfthis Agreement. The Conditional Certificate shall expire three /3\ years from the date of
issuance unless onextension isgranted under Chapter 3.9OTIVIC.
B. Within thirty (30) days of receipt of all materials set forth in Section 2.C.i-iv of this Agreement
and a request from Property Owner for a Final Certificate, the Administrator shall determine
whether the Cn[Dp|Pted Project is: consistent with the Property Owner's application,
consistent this Agreement, and qualified for limited exemption under Chapter 84.l4RCVV,iD
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.SOTK4C, and
the required findings of RCW 04.14.060, the Administrator shall file a Final Certificate with
the King County Department VfAssessments. The Final Certificate must befiled with the King
County Assessor no later than 40 days after the City's receipt of all materials required for the
Final Certificate under TIVIC19O .
C. The King County Department of Assessments shall be responsible for determining the
allocation of the Property's assessed value to be attributed to the multi -family portion of the
P roje ct
Section 4: Property Owner's Annual Reporting Reguirements and Record Keeping
A. Within thirty (30) 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
a notarized declaration containing the following:
L A statement identifying the total number of occupied and vacant multi -family units during
the previous year, including the occupancy rate for 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 incompliance with this Agreement, Chapter 3.9DTIVIC,
and Chapter 84.14RCVV;
iii. A description of any improvements or changes to the property made after the filing of the
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 uDh3 receiving a tax exemption necessary for
the City to comply with any reporting requirements by the State of Washington and/or
King County.
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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,
the Property Owner shall permit the City to enter and inspect the multi -family units, upon
prior notice, tOensure the continued compliance with applicable zoning reqVi[BUO8OtS, land
Use regulations, building codes, Ore codes, and housing codes as required bythe TMC and
state law.
C. Failure to submit the annual declaration as required by Section 4.A of this Agreement, or to
maintain adequate records, may result in cancellation ofthe tax exemption in accordance
with Section 8herein.
If the Property Owner converts any of the multi -family residential housing units subject tothis
Agreement to another use, the Property Owner mhoU notify the King County Department of
Assessment and the Administrator within sixty (60) days of such change in use. Upon such change
inuse, the tax exemption shall becancelled pursuant toSection 8herein.
Section 6: Ownership Transfer
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 0[assignment, as required bythis section, shall constitute grounds tOterminate this
Agreement bythe City pursuant toSection 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 ofthe year immediately following the
calendar year Ofissuance Qfthe Final Certificate.
Section 8: Cancellatign b
y City
The City will cancel the Final Certificate for any property or individual unit that no longer
complies with any of the terms and conditions of this Agreement or with the requirements of
Chapter 3.90TIVIC. Cancellation of the Final Certificate will subject the Property Owner /or any
future property owner) to additional taxes, interest and penalties GSfurther described inChapter
84.14 RCVVand TK4C 3.90.100.H. Upon determining that 8 tax eX8DlpboD Sh@|| be cancelled, the
Administrator shall notify the Property Owner of said cancellation by certified mail, return receipt
requested. The Property Owner may appeal the cancellation determination as specified in TIVIC
3.9O.1OO.Hwithin 3Odays ofthe date ofnotice ofcancellation.
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Section 9: General Provisions
A. Termination
i Automatic Termination. This Agreement shall aVLonnotica1k/ terminate UpDD the
expiration Dfthe eight-year tax exemption, asoutlined |DSection 7herein.
ii. Termination bv Citv. The City may terminate this Agreement atany time under any Vfthe
following circumstances'.
l. The Property Owner obtained the property tax exemption under deceit or false
pretenses, including providing incorrect or inadequate information to the City
regarding the intended use ofthe building unthe property;
2. The Project no longer complies with the requirements ofChapter 3.9OTMC; U[
8. The Final Certificate |Scancelled pursuant t0Section 8herein; and
4. Property Owner fails to substantially comply with the terms of this Agreement.
iii. The Property Owner may terminate its r@hta and obligations under this Agreement by providing 30 days' written notice to the City.
iv. Termination Effect on Final Certificate. If this Agreement is terminated for any reason,
the City shall automatically cancel any Final Certificate that may have been issued to the
Property Owner for the Project. Cancellation of the Final Certificate will subject the
Property Owner (or anyfuture property owner) to additional taxes, interest and penalties
aafurther described inChapter 84,14RCVVand TKqC 3.9O.1OO.H.The Property Owner may
appeal the cancellation determination as specified inTIVIC 3.90.100.H 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 IVIFTE application requests. The Property Owner shall either pay this fee directly
to King County O[reimburse the City for payment Ufthis fee.
D. Governing Law and Venue. This Agreement shall beconstrued and enforced inaccordance
with the laws Vfthe State ofWashington. 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 Tukwila Municipal
Code, the more stringent requirement shall govern. Additionally, this Agreement shall not be
interpreted to prevent the City from enforcing any provisions ufthe Tukwila K4un|uipm| Code
as currently written or amended. Nor shall the Agreement preclude the Property Owner from
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pursuing any administrative appeals or rights permitted under applicable provisions of the
Tukwila Municipal Code.
F. Assignability. Except as allowed in Section S of this Agreement, neither party may assign its
rights, interests, orobligations under this Agreement.
G. Recording. Upon execution of this Agreement by both parties, the Property Owner shall
record this Agreement with the King County Recorder's Office and provide copy ofthe
recorded document tothe City.
H. Indemnification. The Property Owner shall indemnify, defend, and hold harmless the City, its
officers, officials, employees, and volunteers f rorn any and all claims, injuries, damages, losses
or suits arising out of or resulting from the Property Owner's performance ofthis Agreement.
K. Attorney Fees. |Othe event alawsuit i5filed regarding the subject matter Ofthis Agreement,
the prevailing party shall beentitled tnpayment ofattorneys' fee bythe other party.
J. No Third -Party Beneficiaries. This Agreement is for the benefit of the 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 urother rights whatsoever under
this Agreement. No other person or entity not o 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 ofthe
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 mnFuture 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 n18i| to the 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 orcorrespondence.
To Propertv Owner:
Mas Tukwila LLC
271lWest Valley Hwy N#2OO
Auburn, VVA98U0l
Instrument Number: 20260324000017 Document:AG Rec: 5311.50 Page -8 of 9
Record Date:3/24/2026 8:12 AM King County, WA
With a Copy To:
Mas Tukwila LLC
2711 West Valley Hwy N #200
Auburn, WA 98001
To City:
City of Tukwila
Office of the City Clerk
6200 Southcenter Blvd
Tukwila, WA 98188
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 TUKWILA
Signed by: s°
By T614 's By H., ....
__
Thomas McLeod, Mayor �= cobsen, Managing Member
APPROVED AS TO FORM:
Signed by:
By
Office of the City Attorney
ATTEST:
Signed by:
By ,._
City Clerk
Instrument Number: 20260324000017 Document:AG Rec: 5311.50 Page -9 of 9
Record Date:3/24/2026 8:12 AM King County, WA
Description of the Premises
PARCEL "A" CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO L16-0075
RECORDING NO 20170501900005 (BEING A PORTION OF NW QTR SE QTR STR 03-22-04)
ON FILE WITH THE CITY OF TUKWILA DUE TO FORMAT
AVAILABLE ON CITY OF TUKWILA DIGITAL RECORDS CENTER HERE:
(pages 8-13)