The URL can be used to link to this page

Home My WebLink About2021 - Multi-Family Residential Property Tax Exemption Agreement - City of Tukwila / Holden at Southcenter LLC - 20210816001162Instrument 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 (REW 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. 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 i . City of Tukwila, a non -charter, optional code city •-). ' 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 Ll 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 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- 21-O81 Council Approvat N/A MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION AGREEMENT ("ment") BY AND BETWEEN CITY OF TUKWILA AND HOLDEN AT SOUTHCENTER, LLC THIS AGREEMENT ("ment") is entered into this 21st day of May 2021, 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 Holden at Southcenter LLC (the "Property Owner"). 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 2538), enacting a limited property tax exemption for eligible multi -family development projects within the City's designated residential target area, located within the Tukwila Urban Center - Transit Oriented Development (TUC-TOD) zoning district; and WHEREAS, the Property Owner owns a parcel located at 112 Andover Park East ("the Property") within the residential targeted area; and WHEREAS, the Property Owner is constructing a residential or mixed-use development project on the Property which will include multi -family residential units (the "Project"); and WHEREAS, in connection with the Project, the PropeFtyOxvner 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 P'ectnneetsthce|igibi|hycritehaforissuance of a Conditional Certificate of Acceptance of Tax Exemption ("Conditional [crtificato"\ 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 Prjectande|igib||ityforthernufti-farnUytax 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 Instrument Number: 20210816001162 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- Sectionl:[JeOnitions Unless 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 Owner's Obligations A. The Property Owner 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 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: ). 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 minimum 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 (900) square feet and contain at least two bedrooms; v. The residential units must be designed and used for permanent residential occupancy as defined by TMC 3.90.020(J); 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 zoning requirements, land use regulations, environmental requirements, building codes and fire code requirements, as outlined in the TMC. B. Construction ofthe residential units must be completed and receive City -issued a 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 units, 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: 1. 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. 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 2.3 of this Agreement, or within the time limit of any approved extension granted pursuant to TMC Instrument Number: 20210816001162 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- ix Information that the Administrator deems necessary and useful in order to evaluate the eligibility for the Final Certificate. Section 3: City Obligations A. The Cfty will ssue a Conditional Certificate for the Projectject within 45 days of mutual execution of this Agreement. The Conditional Certificate shall expire three (3) years from the date of issuance unless an extension is granted under Chapter 3.90 TMC. 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 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 RCW 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 RCW 84.14.060, the Administrator shall file a Final Certificate with the King County Department ofAssessments. 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 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 4: Property Owner's Annual Reporting Requirements and Record Keeping 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 a notarized declaration containing the foltowing: 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 oftax exemption for the Project; and 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 Instrument Number: 20210816001162 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- pMOrDoUce,tO8D3U;2th8CODtiDUedc0nOp/|aDCeVVith8ppUcabl8zODiDQn2qUir8rDent3 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 4.A of this Agreement, or to maintain adequate records, may result in cancellation of the tax exemption in accordance with Section 8 herein. Section 5: 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 sixty (60) days of such change in use. Upon such change in use, the tax exemption shall be cancelled pursuant to Section 8 herein. 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 to the 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 by the City pursuant to Section 9 herein. 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 of issuance of the Final Certificate. Section 8: Cancellation bv 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 3.90 TMC. Cancellation of the Final 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 TMC 3.90.100.H. Upon determining that a tax exemption shall 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 TMC 3.90.100.H within 30 days of the date of notice ofcanceilation. Section 9: 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 7 herein. ii. Termination by City. The City may terminate this Agreement at any time under any of the following circumstances: Instrument Number: 20210816001162 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- 1' The Property Owner obtained the property tax exemption under deceit or fake pretenses, including providing incorrect or inadequate information to the City regarding the intended use of the buliding on the property; 2. The P'ectno|ongercornp|iesvviththerequirenoentsofChapter3.9OTMC;or 3. The Final Certificate is cancelled pursuant to Section 8 herein; and 4. Property Owner fails to substantially comply with the terms of this Agreement. 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. 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 any future property owner) to additional taxes, interest and penalties as further described in Chapter 84.14 RCW and TMC 3.90.100.H. The Property Owner may appeal the cancellation determination as specified in TMC 3.90.100.H within 30 days of the date of notice of cancellation. O. 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 Uabi|itiesandpena|t|esunderstate|avv. 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 or reimburse the City for payment of this fee. 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 as currently written or amended. 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 as allowed in Section 6 of this Agreement, neither party may assign its rights, interests, 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, |usses Instrument Number: 20210816001162 Document:AG Rec: $217.50 Pof 15 ��U��/ �/�� 1:46 PM County, WA — Record _-__-_- - '------'—� _ —~�, ,.-- o[sVUsaUs|ngoutnforresV|t!ngfronntheaots errors or omissions of the Property Owner in performance of this Agreement. I. 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 severabie. 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 mali 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 Propertv Owner: HOLDEN ATSOUTHCENTER, LLC 1900 N Northlake Way, Suite 237 Seattle, WA 98115 Attn: Jeremiah Joiicoeur With mCopy To: Dentons US LLP 2OOOMcKinney Avenue, Suite l9OO Dallas, Texas 7SZO1 Attn: Toni Weinstein To City: City ofTukvVi|a Office of the City Clerk 63O0SouthcenterBlvd Tukwila, VVA98l88 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 TUKWILA By: Allan Ekberg, Mayor 05/21/2021 APPROVED AS TO FORM: vl• SeernleuaLo<s.ccrn Bye( -4.47,0 0). :--,1-0,,./ze,eg Office of the City Attorney ATTEST: ehicide-9, 06-1eahet-qf By Key, City Clerk 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 RESIDENTIAL UNIT TOTAL SQ FT 0 RESIDENTIAL AMENITY SQ FT 7,957 RESIDENTIAL CIRCULATION & SERVICE SQ FT 6,708 RESIDENTIAL TOTAL SQ FT 14,665 URBAL ARCHITECTURE URAN AL ION FOrrl... ArealwFm4 San41., WO 9M.7 01,..ga rd.) tectReckr.....c urn ura uts. broAst I in rrrn MS45/40.7 HOLDEN AT SOUTHCENTER Exhibit A 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 2 # OF MEMORY CARE UNITS 27 MEMORY CARE UNIT TOTAL SQ FT 11,680 MEMORY CARE AMENITY SQ FT 3,377 MEMORY CARE CIRCULATION & SERVICE SQ FT 3,887 MEMORY CARE TOTAL SQ FT 18,944 URBALP" ARCHITECTURE URBAHRURAL 5.5.116, vi 9atco trmikutu tech ittrChrt cum sum uku Lamritar I urn nc.,6Y-cniz HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 2 1" = 40'-0" 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 LEVEL 3 # OF RESIDENTIAL UNITS 23 RESIDENTIAL UNIT TOTAL SQ FT 15,809 RESIDENTIAL AMENITY SQ FT 105 RESIDENTIAL CIRCULATION & SERVICE SQ FT 3,149 RESIDENTIAL TOTAL SQ FT 19,063 R BA L ARCHITECTURE URBAN RURAL 193EI Vik543VO 1,11Dgkolu 12011 itt,..-tur,,c urn umrat ExIsAgte,11.11ra rum 11.L:R0b1-0773: HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 3 1" = 40'-0" 12/10/2019 12:43:27 PM Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -12 of 15 Record Date:8/16/2021 1:46 PM King County, WA IIi I• •111 .11 1111111111 LEVEL 4 # OF RESIDENTIAL UNITS 23 RESIDENTIAL UNIT TOTAL SQ FT 15,809 RESIDENTIAL AMENITY SQ FT 105 RESIDENTIAL CIRCULATION & SERVICE SQ FT 3,146 RESIDENTIAL TOTAL SQ FT 19,060 URBAL ARCHITECTURE URBANHURAL I') 38 Footsie... Av.. mama 4,1 ea SeDA 6, 1.4408102 OINPuttot.700,71.ct ran warakutlabsfair.hrt rxrn HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 4 1" = 4CY-0" 12/10/2019 12:43:28 PM Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -13 of 15 Record Date:8/16/2021 1:46 PM King County, WA 01.1r. twin' N, 4 LEVEL 5 # OF RESIDENTIAL UNITS 19 RESIDENTIAL UNIT TOTAL SQ FT 12,459 RESIDENTIAL AMENITY SQ FT 1,522 RESIDENTIAL CIRCULATION & SERVICE SQ FT 2,961 RESIDENTIAL TOTAL SQ FT 16,942 URPJAL ARCHITECTURE URBAN1RURA1. F,4g.4. AvantzeFi 44.1,411 5oeI14., ViA98420 hlogki tYcli tect ot.com Lrba UvcRitacim urn nt..w.coo: HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 5 1" = 40'-0" 12/10/2019 12:43:28 PM 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 URBALO ARCHITECTURE URBAN HURAL 1418 f.:rvia. 6.1 tr VOA WACO 01. tzech btcl run .unst in urn 2,364,57-0077; HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 6 1" = 40'-0" 12/10/2019 12:43:29 PM Instrument Number: 20210816001162 Document:AG Rec: $217.50 Page -15 of 15 Record Date:8/16/2021 1:46 PM King County, WA LEVEL 7 # 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 URBALO ARCHITECTURE UR5ANHURAL 19341F.6.•Aetant.Fma. 1.4T, 514i* Y./AS(34W 4110agNitotfchktact,M.com talowAshalortheulun rtrn IltoV-0717 HOLDEN AT SOUTHCENTER 112 ANDOVER PARK EAST, TUKWILA, WA 98188 LEVEL 7 1" = 40'-0" 12/10/2019 12:43:30 PM