HomeMy WebLinkAbout2019 - Restrictive Covenant Agreement - Bellwether Tukwila, LlLP / City of Tukwila - 20191230000521Return Address:
Kenyon Disend, PLLC
II Front Street South
Issaquah, Washington 98027-3820
UhillllNI iIlil 1111111 III I I I'll I I
20191230000521
AGREEMENT Roc: $112.50
12!30/2018 11:38 AM
KING COUNTY, WA
Please print neatly or type information WASHINGTON STATE RECORDER' S
1
11
Document Title(s) (or transactions contained therein): (all areas applicable to your document must be filled in )
1. Restrictive Covenant Agreement
Reference Number(s) of Documents assigned or released:
Additional reference #'s on page of document.
Grantor(s) (Last name, first name, initials)
1. Bellwether Tukwila LLLP, a Washington limited liability limited partnership
Additional names on page of document.
Grantee(s) (Last name first, then first name, and initials)
1. City of Tukwila, a non -charter, optional code Washington municipal corporation
Additional names on page of document.
Legal description (abbreviated: i.e. lot, block, plat or section, township, range)
Ptn. Lot 8 and all of Lot 7, Block 2, Third Add. To Adams Home Tracts, Vol. 15, P. 17
Additional legal is on page 9 of document.
Assessor's Property Tax Parcel/Account Number Assessor Tax # not yet assigned
004300-0108-00; 004300-0112-04; and 004300-0116-00
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.
1 am requesting an emergency nonstandard recording for an additional fee as provided in RCW
36.18.010. 1 understand that the recording processing requirements may cover up or otherwise
obscure some part of the text of the original document.
Signature of Requesting Party
When Recorded Return to:
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Attn: Ben Hayman
DOCUMENT TITLE:
GRANTOR:
GRANTEE:
ABBREVIATED LEGAL:
TAX PARCEL NO(S):
REFERENCE NO.:
City of Tukwila Restrictive Covenant Agreement (Impact Fee
Exemption for Low -Income Housing)
Bellwether Tukwila LLLP, a Washington limited liability limited
partnership
City of Tukwila, a non -charter, optional code Washington municipal
corporation
Ptn. Lot 8 and all of Lot 7, Block 2, Third Add. to Adams Home Tracts,
Vol. 15, P. 17
Complete Legal Description on Exhibit A
004300-0108-00; 004300-0112-04; and 004300-0116-00
N/A
CITY OF TUKWILA RESTRICTIVE COVENANT AGREEMENT
(Impact Fee Exemption for Low -Income Housing)
THIS RESTRICTIVE COVENANT AGREEMENT (this "Agreement") is entered into as
of the Z3c4 day of 1>ecemOec 2019, (the "Effective Date") between the City of Tukwila, a
non -charter, optional code Washington municipal corporation (the "City") and Bellwether
Tukwila LLLP, a Washington limited liability limited partnership ("Bellwether Tukwila"). The
City and Bellwether Tukwila are collectively referred to in this Development Agreement as the
"Parties," and individually as a "Party."
Restrictive Covenant Agreement — The Confluence Page 1 of 6
RECITALS
WHEREAS, the City seeks to promote the development of affordable housing;
WHEREAS, pursuant to Sections 16.26.040 and 16.28.040 of the Tukwila Municipal
Code ("TMC"), the City shall collect fire and parks impact fees from applicants seeking
development approval from the City, such fees which are to be collected from the applicant at
the time a building permit is issued;
WHEREAS, Bellwether Tukwila is the fee owner certain real property located at 3703,
3705, 3707 and 3481 South 152nd Street, Tukwila, WA, and as legally described on Exhibit A
attached hereto (the "Property");
WHEREAS, Bellwether Tukwila has applied to the city for a building permit to construct
certain improvements on the Property, including a multifamily development containing dwelling
units all of which will be Low -Income Housing as that term is defined under TMC 16.26.030(11)
and TMC 16.28.030(10) such definition which is incorporated in Section 2 of this Agreement
(such development, the "Project", and further defined in Section 2 of this Agreement);
WHEREAS, pursuant to TMC 16.26.120(B)(6) and TMC 16.28.120(B)(6), fire and parks
impact fees may be reduced for Low -Income Housing where requested by a property owner and
granted subject to certain criteria (the "Exemption Criteria");
WHEREAS, pursuant to TMC 16.26.120(B)(6) and 16.28.120(B)(6), Bellwether Tukwila
has timely applied to the City for a reduction in fire and parks impact fees;
WHEREAS, the City has found that the Project satisfies the Exemption Criteria;
WHEREAS, in exchange for certain restrictions on the Property, the City has agreed to
grant an exemption under TMC 16.26.120 and TMC 16.28.120, pursuant to which the Project
will be granted an 80% reduction in fire and parks impact fees (the "Impact Fee Exemption");
WHEREAS, pursuant to TMC 16.26.120(B)(6)(b) and TMC 16.28.120(B)(6)(b), the
owner of a property receiving an exemption from fire and parks impact fees must record a
covenant against such property in accordance with Revised Code of Washington (RCW) Section
82.02.060(3); and
WHEREAS, in consideration of the Impact Fee Exemption, and pursuant to those
requirements set forth immediately above, Bellwether Tukwila agrees to the restrictions,
covenants and obligations set forth herein, which will run with and be a burden on the Property
and will be binding on any subsequent purchaser, grantee, owner or lessee and any other person
or entity having any right, title or interest therein and upon their respective heirs executors,
administrators, devisees, successors and assigns of any purchaser, grantee, owner or lessee of the
Property.
Restrictive Covenant Agreement — The Confluence Page 2 of 6
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
for which are hereby acknowledged, and in consideration of the promises and covenants
contained herein, the parties hereby agree as follows.
Section L Incorporation of Recitals. The foregoing recitals are correct and are hereby
incorporated by reference as though fully set forth herein.
Section 2. Definitions
In addition to other terms defined in in the Code and elsewhere in this Agreement, the
following terms have the meanings set forth below.
Area Median Income or AMI means the median gross household income, adjusted for
household size, for King County, as defined and established annually by the U.S. Department of
Housing and Urban Development as the Seattle -Bellevue WA HUD Metro FMR Area.
Dwelling Units means the dwelling units in the Project used as Low -Income Housing.
Low -Income Housing means housing where monthly costs, including utilities other than
telephone, do not exceed 30% of the resident's household monthly income and where household
monthly income must be 80 percent or less of the King County Median family income adjusted
for family size as reported by the U.S. Department of Housing and Urban Development.
Project means that portion of the Property to be used as a multifamily building
containing Dwelling Units all of which will be Low -Income Housing as that term is defined
under TMC 16.26.030(11) and TMC 16.28.030(10) and related building infrastructure, parking
and yard areas, and does not include any portion of the Property dedicated or otherwise reserved
for public use.
Section 3. Statement of Authority. This Agreement is entered pursuant to RCW
82.02.060 and Chapter 16.26 and 16.28 TMC.
Section 4. Project Requirements. During the Term of this Agreement, the
Bellwether Tukwila covenants and agrees to comply with each of the following requirements:
(i) Bellwether Tukwila shall rent seventy-eight (78) of the Dwelling Units to households
whose income at initial occupancy is at or below 50% of AMI and otherwise meeting the
requirements for Low -Income Housing and shall rent twenty-one (21) of the Dwelling
Units with two (2) or more bedrooms to households whose income at initial occupancy is
at or below 60% of AMI; and
Restrictive Covenant Agreement — The Confluence Page 3 of 6
(ii) Bellwether Tukwila shall not use the Project for any purpose other than for Low -
Income Housing.
Section 5. Term. This Agreement shall be effective on upon the date that the final
certificate of occupancy is issued by the City for the Project and shall terminate on the date that
is the ten-year anniversary thereof or upon the City's receipt of the full fire and parks impact fee
pursuant to Section 8.2 of this Agreement, whichever occurs first (the "Term").
Section 6. Reporting. Bellwether Tukwila agrees to submit to the City, or its
designee, such information and reports as City may reasonably require to demonstrate
compliance with the terms of this Agreement, including but not limited to: (a) verification of the
tenant's income at initial occupancy, (b) household size, (c) Dwelling Unit size and (d) rent of
the Dwelling Unit.
Section 7. Covenants Run With the Property. Bellwether Tukwila hereby declares
its express intent that, during the Term, the covenants, restrictions, agreement, and obligations
set forth herein shall be deemed covenants running with the land and shall pass to and be binding
upon successors in title, including any purchaser, grantee or lessee of any portion of the Property,
any other person or entity having any right, title, or interest therein and upon their respective
heirs, executors, administrators, devisees, successors and assigns of any purchaser, grantee, or
lessee of any portion of the Property. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any portion thereof or interest therein
shall contain an express provision making such conveyance subject to the covenants, restrictions,
charges and easements contained herein; provided, however, that any such contract, deed or
other instrument shall conclusively be held to have been executed, delivered, and accepted
subject to such covenants, regardless of whether or not such covenants are set forth or
incorporated by reference in such contract, deed, or other instrument.
Section 8. Default.
8.1 In the event Bellwether Tukwila fails to perform or abide by the restrictions of
Section (4)(i) of this Agreement, and such failure, to the extent curable, is not cured within
ninety (90) days after delivery of written notice from the City, such notice which shall include,
but not be limited to setting forth the number of Dwelling Units in default of such restrictions (a
"Rent Default Notice"), the City may institute and prosecute any proceeding at law or equity to
abate, prevent or enjoin any such violation or to compel specific performance by Bellwether
Tukwila of its obligations hereunder; provided that, Bellwether Tukwila shall not be required by
any provision herein to evict a tenant. During such 90 -day period, Bellwether Tukwila shall
have the right to cure the default set forth in the Rent Default Notice, including but not limited to
by submitting to the City a reasonable explanation for such default, and entering into a written
agreement with the City setting forth a plan to effect a cure and any other conditions of such
settlement.
8.2 In the event that Bellwether Tukwila converts the Dwelling Units and Project to a
use other than for Low -Income Housing, in violation of Section (4)(ii) of this Agreement, and
Restrictive Covenant Agreement — The Confluence Page 4 of 6
within 90 days after written notice from the City to Bellwether Tukwila of such default
Bellwether Tukwila fails to clearly demonstrate that the Project has not been converted to a use
other than Low -Income Housing, Bellwether Tukwila shall pay the City the full fire and parks
impact fees for the Property then in effect at the time of such conversion and this Agreement
shall terminate and be of no further force and effect. Upon receipt of payment of such fee, the
City will promptly record a termination of this Agreement or provide Bellwether Tukwila with
such other evidence of termination of this Agreement as Bellwether Tukwila shall request.
Section 9. Other.
9.1 Severability. The invalidity of any clause, part or provision of this Agreement
shall not affect the validity of the remaining portions hereof.
9.2 Notices. All notices to be given pursuant to this Agreement shall be in writing
and shall be deemed given when mailed by certified or registered mail, return receipt requested,
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:
Owner:
City:
Bellwether Tukwila LLLP
c/o Bellwether Housing
1651 Bellevue Avenue
Seattle, WA 98122
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
With a copy to: City Attorney
City of Tukwila
c/o Kenyon Disend, PLLC
11 Front Street South
Issaquah, WA 98027
9.3 Governing Law, Venue. This Agreement is governed by the laws of the State of
Washington. Venue for any action shall be in King County Superior Court.
9.4 Successors and Assigns. This Agreement is binding upon and will inure to the
benefit of the Parties and their respective permitted successors and assigns.
9.5 Modification; Headings. This Agreement may not be modified or amended
except by an instrument in writing signed by the Bellwether Tukwila and the City. The headings
in this Agreement are for the purpose of reference only and do not limit or otherwise affect any
of the terms hereof.
Restrictive Covenant Agreement — The Confluence Page 5 of 6
9.6 No Third -Party Beneficiaries, No Dedication. This Agreement is not intended
to confer upon any person other than the Parties to this Agreement any rights or remedies under
this Agreement. Nothing in this Agreement shall be deemed to be a gift or dedication of any
portion of the real property referred to herein to the general public nor for any public use or
purpose whatsoever.
9.7 Authority. The Parties each represent and warrant that they have full power and
actual authority to enter this Agreement and to carry out all actions required of them by this
Agreement. All persons are executing this Agreement in their representative capacities and
represent and warrant that they have full power and authority to bind their organizations.
9.8 Entire Agreement. This Agreement represents the entire agreement of the Parties
with respect to the subject matter hereof. There are no other agreements, oral or written, except
as expressly set forth herein and this Agreement supersedes alI previous agreements oral or
written.
9.9 Further Action. Each Party agrees to execute any and all instruments,
documents and resolutions as may be reasonably necessary to effectuate the covenants, terms,
conditions and provisions contained herein.
9.10 Matters of Record. This Agreement is subject to all existing easements,
licenses, encumbrances, title defects, matters of record, reservations and conditions affecting the
Property.
no further text; signatures appear on following pages]
Restrictive Covenant Agreement — The Confluence Page 6 of 6
IN WITNESS WHEREOF, the parties have caused this Restrictive Covenant Agreement to be
signed by their respective, duly authorized representatives, as of the day and year first written
above.
City of Tukwila,
a non -charter, optional code Washington municipal corporation
By
A Tan kberg ‘241-3/11
Mayor
ATTEST:
By
City Clerk
APPROVED NiSeTO FORM:
ere,
By
ity Attorney
STATE OF WASHINGTON
) ss
COUNTY OF KING
On this -7-3°14- day of 4?c47i"il'• 6"--, 2019, before me personally appeared
Ai/ertki to me known to be the 123'1a /- of the City of Tukwila, and
j—
acknowledged said igstrument to be the free and voluntary aWand deed of said entity, for the uses and
purposes therein mentioned, and on oath stated that she 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.
----- (Signature of Notary)
77:4i
(Legibly Print or Stamp Name of Notary)
Notary public in and for the State of Washington
My appointment expires /0
2J 1
Restrictive Covenant Agreement - The Confluence Signature Page 1 of 2
Bellwether Tukwila LLLP,
a Washington limited liability limited partnership
By: HRG Development LLC
Its: General Partner
By: Bell
Its: Mama
using
Susan
Chief Executive Officer
STATE OF WASHINGTON
) ss.
COUNTY OF KING
I certify that I know or have satisfactory evidence that Susan Boyd is the person who appeared
before me and said person acknowledged that she signed this instrument, on oath stated that she
was authorized to execute the instrument and acknowledged it as the Chief Executive Officer of
Bellwether Housing, the manager of HRG Development LLC, the general partner of Bellwether
Tukwila LLLP, to be the free and voluntary act such nonprofit corporation on behalf of such
company on behalf of such partnership for the uses and purposes mentioned in the instrument.
DATED: .0(!: e b„.(7(
(Print Nam ''' 0. r
Residing at
My appointment expires: - I ,°) 1
Restrictive Covenant Agreement - The Confluence Signature Page 2 of 2
EXHIBIT A
LEGAL DESCRIPTION
LOT 7, BLOCK 2, THIRD ADDITION TO ADAMS HOME TRACTS, RECORDED IN
VOLUME 15 OF PLATS, PAGE 17, IN KING COUNTY, WASHINGTON.
AND
THE WEST 63 FEET OF LOT 8, BLOCK 2, THIRD ADDITION TO ADAMS HOME
TRACTS, ACCORDING TO PLAT RECORDED IN VOLUME 15 OF PLATS, PAGE 17,
RECORDS OF KING COUNTY, WASHINGTON.
Restrictive Covenant Agreement - The Confluence Exhibit A