HomeMy WebLinkAbout2020 - Multi- Family Residential Property Tax Exemption Agreement - CRP/AR Tukwila Owner, LLC - 20200130000616Return Address:
Tukwila City Clerk IIII
1111111111111 C 11111111 11
6200 Southcenter Blvd.
20200130000616
Tukwila, WA 98188
ATTN: Brandon Miles
AGREEMENT Rec: $118.50
1/30/2020 12:15 PM
KING COUNTY, WA
11
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)
l Multi -Family Residential Property Tax Exemption Agreement 2.
3. 4.
Reference Number(s) of Documents assigned or released: N/A
Additional reference #'s on page of document
Grantor(s) Exactly as name(s) appear on document
l City of Tukwila, a municipal corporation ,
2.
Additional names on page of document.
Grantee(s) Exactly as name(s) appear on document
l CRP/AR Tukwila Owner, LLC
2. ,
Additional names on page of document.
Legal description (abbreviated: i.e. lot, block, plat or section, township, range)
Ptn Tracts 8 & 9, Andover Industrial Park No. 2, Vol. 71, Pgs. 68-69
Additional legal is on page of document.
Assessor's Property Tax Parcel/Account Number 0 Assessor Tax # not yet
assigned 022310-0080
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to verify the accuracy or completeness of the indexing information provided herein.
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referred to as an emergency nonstandard document), because this document does not meet margin and
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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 ,. day of November, 2019, by and between the
City of Tukwila, Washington (the "City"), a non -charter, optional code city organized under the
Taws 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
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).
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 withn 30 days of arty transfer of the
Property Owner's ownership interest in the Property or in the improvements made to the
Property under this Agreement and shaR assign fts interests in this Agreement to any subsequent
purchaser/owner upon written approval by the City. Such approval shall not be unreasonably
withheld. Failure to notify the City or assign the Agreement as required by this section may result
in termination of the Agreernent pursuantto Secton 7 herein.
Section 6: 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 from the date the King County Department of
Assessments applied the exemption.
Section 7: Cancellation by City
The City reserves the right to cancel the Fina( 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 84.14RCVVand
TMC 3.90.100.H. The Property Owner may appeal the cancellation determination as specified in
TMC ].9O.lOO.Hwithin 30days ofthe date ofnotice ofcancellation.
Section 8: 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 by City. 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 faise
pretenses, including providing incorrect or inadequate information to the City
regarding the intended use of the buitding on the property.
2. The pr'ectno|ongerconnp|iasxviththerequirennentsofChapter3.9OTK4C.
3. The Final Certificate 15 cancetled pursuant to Section 7 herein.
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 Liability. The Property Owner acknowledges and agrees that, regardless ofthe
reason therefor, termination of this Agreement may subject Property Owner to potential tax
Iiabilities and penalties under state Iaw.
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 be construed and enforced in accordance
with the laws of the State of Washington. Venue for any action arising under this Agreement
shall lie in King 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 is sold, transferred, 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 to the 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
or suits arising out of or resulting from the acts, errors or omissions of the Property Owner in
performance of this Agreement
1. Attorney Fees. In the event a lawsuit is filed regarding the subject matter of this 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
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 whatsoever under
this Agreement. No other person or entity not a Party to this Agreement may enforce the
terms and provisions of this Agreement.
K. Severability. The provisions of this 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. Notices, demands, and correspondence between the City and Developer shall be
deemed sufficiently given if dispatched by pre -paid first-class mail to the addresses of the
parties as designated in this Section. The parties hereto may, from time to time, advise the
other of new addresses for such notices, demands or correspondence.
To Property Owner:
CRP/AR TUKWILA OWNER, L.L.C.
1325 4th Avenue, Suite 1005
Seattle, WA 98101
Attn: Jeremiah Jolicoeur
CRP/AR TUKWILA OWNER, L.L.C.
1001 Pennsylvania Ave, N.W., Suite 220 South
Washington, D.C. 20004
Attn: Adam Van Ness
With a Copy To:
Dentons US LLP
2000 McKinney Avenue, Suite 1900
Dallas, Texas 75201
Attn: Toni Weinstein
To City:
City of Tukwila
Office of the City Clerk
6200 Southcenter Blvd
Tukwila, WA 98188
With a Copy To:
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
By
Allan Ekberg, Mayor
A PPROVEI7 A530- FORM:
Office of the City Attorney
ATTEST: if
ity'rk
By
410111:211/-
0121./11
CRP/AR TUKWILA OWNER, L.L.C.,
a Delaware limited liability company
By: CRP/AR Tukwila Venture, L.L.C.,
a Delaware limited liability company, its sole member
By: Broadstone Tukwila Alliance, LLC,
a Delaware limited liability company, its administrative member
By:
7//
Jeremiah Jolicoeur
Member
EXHIBIT A - BUILDING PLAN
# 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
URBAL
ARCHITECTURE
;).3•,�1
1938 Funia»• A•..: -w E.ol v„
S.4.414.1, '04
NW,/ ut•1.1,,ra:hrn m„
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 1
1” = 401-0"
12/10/2019 12:02:21 PM
r .111111111
# 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
URS,,._..
ARCHITECTU RE
1938 Funi.. Aa`iw E.o, 1, 11.62
Srr.+k',V A ici'02
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 2
1" = 40'-0"
12/10/2019 12:02:21 PM
LEVEL 3
# 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)
U B,
ARCH ITECTU RE
p. ANIRuR t.
town, lr-.r :Irrn rnn
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 3
1" = 40'-0"
12/10/2019 12:02:22 PM
# 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
aR
ARCHITECTU RE
BAHRUR !"
WA Sa,B:
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 4
1" = 40'-0"
12/10/2019 12:02:23 PM
LEVEL 5
# 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
ARCHITECTU RE
028 Fu"i.r
3.v;I1.'0A 5i'02
0 r:::,, i b, :rcr tt.:%re. c cc,
ui«x-u6rlrc,itathrn m:,
,nr.a5nm1:
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 5
1" = 40'-0"
12/10/2019 12:02:24 PM
# 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
ARCHITECTU RE
1938 ran:rw kti-w E.!�.„ z,
lil; +rICU vd, jcr;.re. CLt�i
,o, Al ixtvamrit.rttra rrn
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 6
1" = 401-0"
12/10/2019 12:02:25 PM
EVEL
# 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
111:4.1iG04+C .ra.cm
evH.u61r_r thr. rnr
MARVELLE SOUTHCENTER
411 BAKER BOULEVARD, TUKWILA, WA 98188
LEVEL 7
1" = 40'-0"
12/10/2019 12:02:26 PM