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Home My WebLink About19-181 - CRP/AR Tukwila Owner, LLC - Multi-Family Residential Property Tax Exemption Agreement• C FY MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION AGREEMENT ("Agreement") 19-181 Council Approval N/A CITY OF TUKWILA AND CRP/AR TUKWILA OWNER L.L.C. BY AND BETWEEN THIS AGREEMENT is entered into this £4.... clay of November, 2019, 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 CRP/AR TUKWILA OWNER, L.L.C., a Delaware limited liability company (the "Property Owner"). WHEREAS, the City desires to stimulate the construction of residential units within the Southcenter District of the City; and WHEREAS, Chapter 84.14 RCW permits cities to designate a residential targeted area eligible for a 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 multi -family development projects within a designated residential target area in the Tukwila Urban Center - Transit Oriented Development (TUC-TOD) zoning district; and WHEREAS, the Property Owner owns a parcel located at 411 Baker Boulevard, King County Parcel No. 022310-0080 ("the Property") within the residential targeted area; and WHEREAS, the Property Owner is constructing a mixed -use development project on the Property which 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 of the Tukwila Municipal Code (TMC); and WHEREAS, the City has determined that the Project meets the eligibility criteria for issuance of a conditional certificate of acceptance for the multi -family tax exemption ("MFTE"); and 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 of acceptance; NOW THEREFORE, the City and the Applicant mutually agree as follows: Section 1: Property Owner's Obligations A. The Property Owner will construct on the Property a mixed use project substantially consistent with the plans depicted in the attached Exhibit A, which is incorporated herein by this reference. Construction shall be considered substantially consistent for the purposes of 1st- d a„ be* -.:nc&l.R.3 this Agreement if, at a minimum, construction of the project meets the following requirements: i. The residential units must have an average size of at least 500 square feet per unit; ii. A minimum of a least four dwelling units shall be constructed in either a mixed use or residential building; iii. A minimum of 15 percent of the residential units must be at least 900 square feet each and contain at least two bedrooms each; iv. The residential units must be designed and used for permanent residential occupancy as defined by TMC 3.90.020(J); v. 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 vi. The project shall comply with all applicable zoning requirements, land use regulations, environmental requirements, building codes and fire code requirements, as outlined in the TMC. B. Construction of the residential units must be completed, including having a certificate of occupancy, within three years from the date of issuance of the conditional certificate of acceptance of tax exemption by the City, or within authorized extension limits. C. Upon issuance of a permanent certificate of occupancy for the residential units, Property Owner shall file with the City's Economic Development Administrator ("Administrator") the following: i. A statement of expenditures made with respect to each multi -family housing unit, and of the total expenditures made with respect to the total property; ii. A description of the completed work and a statement of qualifications for the exemption; iii. A statement that the work was completed in the timeframe outlined in Section 1.B of this Agreement, or within the time limit of any approved extension granted pursuant to TMC 3.90.080. Section 2: City Obligations A. The City will issue a Conditional Certificate of Acceptance of Tax Exemption for the Project ("Conditional Certificate") within 45 days of execution of this Agreement. The Conditional Certificate shall expire three (3) years from the date of issuance. B. Upon the Property Owner's successful completion of its obligations as set forth in Section 1 of this Agreement, and after receiving a request from Property Owner for a Final Certificate of Tax Exemption, the City shall file a Final Certificate of Tax Exemption ("Final Certificate") with the King County Department of Assessments. The Final Certificate must be filed with the assessor no later than 40 days after the City's receipt of all materials required for the final certificate under TMC 3.90.090(A). �1� 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 project. Section 3: Property Owner's Annual Reporting Requirements 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: i. 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 TMC, and Chapter 84.14 RCW; 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. v. Any other information with respect to the units receiving a tax exemption necessary for the City to comply with any reporting requirements by the State of Washington 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, the Property Owner shall permit the City to enter and inspect the multi -family units, upon prior notice, to ensure the continued compliance with applicable zoning requirements, land use regulations, building codes, fire codes, and housing codes as required by the TMC. C. Failure to submit the annual declaration as required by Section 3(A) of this Agreement, or to maintain adequate records, may result in cancellation of the tax exemption in accordance with Section 7 herein. Section 4: Conversion of Residential Units If the Property Owner converts any of the multi -family residential housing units subject to this Agreement to another use, the Property Owner shall notify the King County Department of Assessment and the Administrator within 60 days of such change in use. Upon such change in use, the tax exemption shall be cancelled pursuant to Section 7 herein. Section 5: Ownership Transfer The Property Owner agrees to notify the Administrator within 30 days ofany transfer of the Property Owner's ownership interest in the Property or in the improvements made to the Property underthis Agreement and shall assign its interests in this Agreementto anysubsequent purchaser/owner upon written approval by the City. Such approval shall not be unreasonably withheld. Fai|uretonotifvtheCity orassign the Agreement asrequired bythissection may result intermination ofthe Agreement pursuant toSection 7herein. Section 6:Duration ofExemption The value of the improvements qualifying under this Agreement will be exempt from ad valorem property tax for eight (8) years beginning from the date the King County Department of Assessments applied the exemption. Section 7: Camcellatiombv CitV The City reserves the right to cancel the Final Certificate should the Property owner, and/or its successor or assigns fail to comply with any of the terms and conditions of this Agreement. Cancellation of the Final Certificate may subject the Property Owner (or future Property Owner) to potential tax liability, 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 in TWVC3.BO.lOO.Hwithin SOdays ofthe date ofnotice ofcancellation. Section Q:General Provisions A. Termination i. Automatic Termination. This Agreement shall automatically terminate upon the expiration of the eight -year tax exemption, as outlined in Section 6 herein. ii. Termination bv Citv. The City may terminate this Agreement at any time under any of the following circumstances: 1. 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 onthe property. 2. The projectno|ongerconnp||esvviththenequirennentsofChapter3.9OTW1C. 3. The Final Certificate iscancelled pursuant tuSection 7herein. iii. Termination by Property Owner. The Property Owner may terminate its rights and obligations under this Agreement by providing 30 days' written notice to the City. B. Potential Tax Liobilitn'ThePropertvDvvneracknowledgasandaQreesthatnegardhessofthe reason therefor, termination ofthis Agreement may subject Property Owner topotential tax liabilities and penalties understate 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 D. Governing Law and Venue. This Agreement shall beconstrued and enforced inaccordance with the laws ofthe State o[Washington. 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 of the Tukwila Municipal Code, including, but not limited to, the zoning code, sign code, building code, fire code, and public works standards. If 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 of the Tukwila Municipal Code. Nor shall the Agreement preclude the Property Owner from pursuing any administrative appeals or rights permitted under applicable provisions of the Tukwila Municipal Code. F. Assignability. Except for case the Property bsold, Ltransferred, or acquired by a new entity, neither party may assign its rights and/or obligations 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 a copy of the recorded document tnthe 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, damnageo losses or suits arising out of or resulting from the acts, errors or omissions of the Property Owner in performance ofthis Agreement |. Attorney Fees. |nthe event alawsuit is filed regarding the subject matter ofthis Agreement, the prevailing party shall be entitled to payment of attorneys' fee by the other party. J. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and isnot intended tobenefit any other person orentity, and noperson orentity not asignatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions ofthis Agreement. V. SevermbiUitv' 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 ofthe remainder of this Agreement, or the validity of its application to other persons or circumstances. \Y �M L. Amendment toAgreement; Effect of Agreement on Future Actions. This Agreement may be amended 6«mutual consent ofall ofthe parties, provided that any such amendments are in M. Notices. Notices demands, and correspondence between the City and Developer shall be deemed sufficiently given if dispatched by pre -paid first-class nnoU to the addresses of the parties osdesignated inthis Section. The parties hereto may, from time hotime, advise the other ofnew addresses for such notices, demands orcorrespondence. TmPrmper%v Owner: CRP/AR TUKWILAOWNER, L�C. 1S254mAvenue, Suite 1OO5 Seattle, VVA90IO1 Attn: Jeremiah ]oUcoeur TUKVVLAOWNER, LLC 1OO1Pennsylvania Ave, N.VV,Suite 22OSouth Washington, D.C.ZOOO4 Attn: Adam Van Ness With gCmpVTo: DentonsUSLLP ZOOOMcKinney Avenue, Suhe1gOO Dallas ,Texas 752O1 Attn: Toni Weinstein TmCitV: City ofTukwila Office ofthe City Clerk 62OOSouthcenterBlvd Tukwila, WA 98188 With a CwpVTo: Office ofEconomic Development 62OOSouthcenterBlvd Tukwila, VVAg8l80 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the dates set forth below: CITY OF TUKWILA By %--1 Allan Ekberg, Mayor AP : ByZ Office ofthe City Attorney By CRP/AR T0KWILAOWNER, L.LC., a Delaware limited liability company By: CRP/AR Tukwila Venture, LLC., a Delaware limited liability company, its sole member By: 8roadstoneTukwila Alliance, LLC a Delaware limited liability company, its administrative member By: ]evemiah]o|icoeur Member BAKER BLVD wu��rr raurwwM u'wwwi ■gin ?an�� .�.�'��i�■�' iWWw.Nw�uw��E�z■�wwww w_nn •rlp1� �� = S7■L M1M111�_'P. aw�� www 1. J�i'11��1�*4 N�MENWMP ww\'1�Mr�J--ram ►.��w�w�mw�ww �■1■I�rlfi2441. I��!enr�rIMORMM w�rr�ra!enr>•�w�rr...�rr>•ww�� ■ rr111111��1\ Ir�w•rw �ww�wr�rrr■wrw�r. �rr��wwwww` i'— 11:1411�1111�1��4�` , rr141111111.1�`� i740tvotssit 0�iAilkN I # OF RESIDENTIAL UNITS 0 RESIDENTIAL UNIT TOTAL SQ FT 0 RESIDENTIAL AMENITY SQ FT 7,575 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 2,967 SQ FT RESIDENTIAL PARKING SQ FT 25,740 SQ FT TOTAL RESIDENTIAL SQ FT 36,282 SQ FT ANDOVER PA ARCHITECTURE 1938 F®Wien ArcAw FmL uu•w 5ue:lk: V!X i2:h2 h1a�1 W :rdi+rrtutcom rMMul:,k jtI,Iu+..nexe MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 1 1/32" = 11-0" 17-004 10/4/2019 1:39:55 PM Exhibit A _ _ � ` -6 || 1�b [d I v= oo M9 �= =x ` ~ QPEN-TQ BELOW _ U U �= RAMP DOWN Q* #8FRESOENTALUNITS 2 RESIDENTIAL UNIT TOTAL G8FT 2,038 RESIDENTIAL AMENITY KOFT 1.911S0FT RESIDENTIAL SERVICE/CIRCULATION SOFT 2.682SOFT RESIDENTIAL PARKING SOFT 28,288SUFT TOTAL RESIDENTIAL SQFT 34.800GQFT \ \ I U BlL�� ARCHITECTURE uonAw1aun,`�L M/\RVELLE S{]UTHCENTER, AN ACTIVE ADULT RESIDENCE 41lBAKE RBOULEVARC\TUKVV|LA, VVA981D8 LEVEL 1/32"=11'0" D-004 md "", ��PF --'--` #OFRESIDENTIAL UNITS 20 RESIDENTIAL UNIT TOTAL DUFT 23.718SOFT RESIDENTIAL AMENITY SUFTO8KCOURTYARD> 4.208SOFT<+5.358) RESIDENTIAL SERV(CBC|RCULA70NSQFT 4,336GQFT TOTAL RESIDENTIAL SqFT(W1COURTYARD) 32.262SQFT(37,620) ARCHITECTURE uuu:x�nunA, L �� M/\RVE[[E SOUTHCENTEQ/\N ACTIVEADULT RESIDENCE 411BAKER BOULEVARD, TUKVVLA,VVA981Q8 LEVEL 1/3211=11-0" 17-O04 LEVEL 4 # OF RESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SQ FT 28,343 SQ FT RESIDENTIAL AMENITY SQ FT 0 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,203 SQ FT TOTAL RESIDENTIAL SQ FT 32,546 SQ FT U : BA?, ARCHITECTURE URBPNI RURAL IOU Fimitvier. A•mutEwa e.mw Sev�tk„Y/A 9:62 tram LrEslatii`,..1 trvi cam 206-157rnz MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 4 1/32" = 11-0" 17-004 10/4/2019 1:40:04 PM #0FRESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SOFT 28,343SQFT RESIDENTIAL AMENITY SOFT 0SOFT RESIDENTIAL SERVICE/CIRCULATION SUFT 4.208SOFT TOTAL RESIDENTIAL SQFT 32,5*6SQFT A"""" I F ARCHITECTURE Vno�e�mux�� 'X~wNi*r MARVEL[E S[]UTHCENTEA/\NACTIVE ADULT RESIDENCE 411BAKER BOULEVARD, TUKVVLA,VVA9O1O8 LEVELS 1/3211=11-0" 17-004 10/4/20191:40:08PIW LEVEL 6 # OF RESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SQ FT 28,343 SQ FT RESIDENTIAL AMENITY SQ FT 0 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,203 SQ FT TOTAL RESIDENTIAL SQ FT 32,546 SQ FT USf:"'i d-..;,t. . a ARCHITECTURE URBAN1 RURAL 1938 FAnierr Xmac Emtea"+w Siv I YJ9.92102 h1k-11WudRrrt:mtam vvw.uhtk• :ltre sa:e 1 2114257-0172 MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 6 1/32" =11-0" 17-004 10/4/2019 1:40:12 PM #OFRESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SUFT 28,343SOFT RESIDENTIAL AMENITY GOFT OSDFT RESIDENTIAL SERVICE/CIRCULATION S8FT 4,203SUFT TOTAL RESIDENTIAL SQFT 32.548SQFT ARCHITECTURE uoa:w|nonxL MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA981D LEVEL 1/3211=1f-0" 1016-111/OW2 ANDOVER PARK E # OF RESIDENTIAL UNITS 0 RESIDENTIAL UNIT TOTAL SQ FT 0 RESIDENTIAL AMENITY SQ FT 7,575 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 2,967 SQ FT RESIDENTIAL PARKING SQ FT 25,740 SQ FT TOTAL RESIDENTIAL SQ FT 36,282 SQ FT ARCHITECTURE URi3 ;!RUi'.;".(_ ht:�1„W brd,bx;.reccm MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 1 1/32" =11-0" 17-004 10/4/2019 1:39:55 PM MI STAIR A ,STAIR 11111111 -t RAMP DOWN —�— LEVEL 2 fi 17E11'TQ BELOW 'll # OF RESIDENTAIL UNITS 2 RESIDENTIAL UNIT TOTAL SQ FT 2,038 RESIDENTIAL AMENITY SQ FT 1,911 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 2,682 SQ FT RESIDENTIAL PARKING SQ FT 28,269 SQ FT TOTAL RESIDENTIAL SQ FT 34,900 SQ FT U RE ARCHITECTURE URBAN! RURAL 1938 Fdnien A•mw Ent,�mw EWli e,WA 102 K..«u+1.1. cr: yn,em„ 2i4-15l-(072 MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 2 1/32" =11-0" 17-004 10/4/2019 1:39:55 PM # OF RESIDENTIAL UNITS 28 RESIDENTIAL UNIT TOTAL SQ FT 23,718 SQ FT RESIDENTIAL AMENITY SQ FT (W/COURTYARD) 4,208 SQ FT (+5,358) RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,336 SQ FT TOTAL RESIDENTIAL SQ FT (WI COURTYARD) 32,262 SQ FT (37,620) ARCH ITECTURE u^ e A ;,,1 r ioaa Fa,.;v. Aal:,w• Esta4.lr•tra ..vak, V!A 50'72 h1. iW tbd.rcccm vow. urn urn V 6-1 J4i12 MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 3 1/32" = 1'-0" 17-004 10/4/2019 1:40:00 PM LEVEL 4 # OF RESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SQ FT 28,343 SQ FT RESIDENTIAL AMENITY SQ FT 0 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,203 SQ FT TOTAL RESIDENTIAL SQ FT 32,546 SQ FT u't 6' rA L. ARCHITECTURE UR13ANgRURAL 1938 Frnitro .'lVv"ILL Fat r.rc•m Sui:110/0. S®O2 hl;,9.1 1bawfi7trt.ratmt i\14I51402 MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 4 1/32" = 1'-0" 17-004 10/4/2019 1:40:04 PM \ #0FRESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SOFT 28,348SOFT RESIDENTIAL AMENITY SOFT OSOFT RESIDENTIAL SERVICE/CIRCULATION SOFT 4.203GQFT TOTAL RESIDENTIAL SQFT 32'546SQFT \ ARCHITECTURE uny^p�nvxx� MARVE[[E S[>UTHCENTEP!AKjACTIVE ADULT RESIDENCE 41lBAKER BOULEVARD, TUKVVU\VVA9D1OO LEVEL 1/3211=11-0" 17-O04 10/4/30191:40J08PW4 LEVEL 6 # OF RESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SQ FT 28,343 SQ FT RESIDENTIAL AMENITY SQ FT 0 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,203 SQ FT TOTAL RESIDENTIAL SQ FT 32,546 SQ FT L P. J A L ARCHITECTURE URBANIRUr2Ai ton Fd";tw A•mux Ea,-tn. em:rk Y/MCrsz h1.ki b 'ard L rt tm wromabal.r.114,1trn tan MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 6 1/32" =1'-0" 17-004 10/4/2019 1:40:12 PM LEVEL 7 # OF RESIDENTIAL UNITS 34 RESIDENTIAL UNIT TOTAL SQ FT 28,343 SQ FT RESIDENTIAL AMENITY SQ FT 0 SQ FT RESIDENTIAL SERVICE/CIRCULATION SQ FT 4,203 SQ FT TOTAL RESIDENTIAL SQ FT 32,546 SQ FT -,' ARCHITECTURE 1026 Fa";eH A•rcAw Eat rsn+c. E.vnk. W A 52'02 4i 1_^tautb1Srdt tix:.rc r cm «.m,uhiLv r dlm ran ;�:I p-l57-071 MARVELLE SOUTHCENTER, AN ACTIVE ADULT RESIDENCE 411 BAKER BOULEVARD, TUKWILA, WA 98188 LEVEL 7 1/32" =11-0" 17-004 10/4/2019 1:40:16 PM