HomeMy WebLinkAbout2023 - Multi-Family Residential Property Tax Exemption Agreement - CRP/AR Prose Southcenter Owner, LLC - 20230607000811Instrument Number: 20230607000811 Document:AG Rec: S215.50 Page -1 of 13
Record Date:6/7/2023 3:01 PM
Electronically Recorded King County, WA
Name & Return Address:
City Clerk
6200 Southcenter Blvd
Tukwila, WA 98188
Washington State Recorder's Cover Sheet (RCW 65.04) Please print legibly or type information.
Document Title(s) Multi -Family Residential Property Tax Exemption Agreement
Grantor(s) City of Tukwila, a non -charter, optional code city.
Additional Names on Page of Document
Grantee(s) CRP/AR Prose Southcenter Owner, L.L.C, a Deleware limited liablity
company.
Additional Names on Page of Document
Legal Description
(Abbreviated: i.e., lot, block & subdivision name or number OR section/township/range and quarter/quarter section)
Plat Lot 4-5, ANDOVER INDUSTRIAL PARK #2 PORTION TAXABLE
Complete Legal Description on Page of Document
Auditor's Reference Number(s)
Assessor's Property Tax Parcel/Account Number(s)0223100040
Non Standard Fee $50.00
By signing below, you agree to pay the $50.00 non standard fee.
I am requesting an emergency non standard recording for an additional fee as provided in
RCW 36.18.010. I understand that the recording processing requirements may cover up or otherwise
obscure some part of the text of the original document.
Signature of Party Requesting Non Standard Recording
NOTE: Do not sign above or pay additional $50.00 fee if document meets margin/formatting requirements.
The Auditor/Recorder will rely on the information provided on this cover sheet.
Staff will not read the document to verify the accuracy or completeness of the indexing information provided herein.
NARecording\Forms\RecordingCoverSheetdocx Rev 7/14
Instrument Number: 20230607000811 Rco: $215.50 Page -2 of 13
Record Dxte:6/7/2023 3:01 PM King County, WA
FINAL, April 11, 2023
23-094
Council Approval N/A
MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION AGREEMENT ("nnemt°)
BY AND BETWEEN
CITY OF TUKWILA AND CRP/AR PROSE SOUTHCENTER OWNER, LLC
THS AGREEMENT ("Agreement") is entered )nto this l9th day of May 2023, 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 Prose Southcenter Owner,
L.L.C, a Delaware limited liability company (the "Property Owner").
WHEREAS, the City desires to encourage increased residential opportunities and o stimulate
the construction of new multi -family housing within a portion of the City's Tukwila Urban Center
- TransFt 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, 20I4, the Tukwila City Council adopted City Council Ordinance
No. 2462 (as amended by Ordinance Nos. 2538 and 2665 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, located within
the Tukwila Urban Center - Transit Oriented Development (TUC-TOD) zoning district; and
WHEREAS, the Property Owner owns a parcel located at 0223100040 ("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 Pject meets the eligibility criteria for issuance
of a Conditional Certificate of Acceptance of Tax Exemption ("Conditional Certificate") for the
multi -family tax exemption ("MFTE"); and
WHEREAS, TMC 3.90.070/AJ requires the Property Owner to enter into an agreement with
the City regarding the terms and conditions of the Prject and eligibility for the multi -family tax
exemption prior to issuance of a Conditional Certificate;
NOW TI-IEREFORE, 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
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: S215.50 Page -3 of 13
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FINAL, April 11, 2023
Section 1: Definitions
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 3.90.020.
Section 2: Propertv Owner's Obligations
A. The Property Owner will construct on the Property a residential 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 consistent with TMC 3.90.050:
i. The residential units must be located within the residential targeted area, as defined in
TMC 3.90.030;
|i. 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 Ieast two bedrooms;
v. To promote workforce housing, the residential units must be designed and used for
permanent residential occupancy made available to residents of all ages;
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 Chapter 3.90 TMC and state law.
D. Construction of the residential units must be completed and receive a City -issued 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:
i. 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.B of this
Agreement, or within the time limit of any approved extension granted pursuant to TMC
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: $215.50 Page -4 of 13
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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 wilI issue 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 shaU fie a Final Certificate with
the King County Department of Assessments. The Final Certificate must be filed 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 3.90.090/4J.
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 (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 foltowing:
i. A statement identifying the total number of occupied and vacant multi -family units during
the previous year, inctuding 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 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 dectaration, as applicable;
iv. The value of tax exemption for the Pject; 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 shati 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
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: $215.50 Page -5 of 13
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FINAL, April 11, 2023
prior notito ensure the continued compliance with applicable zoning requirements,land
use regulations, building codes, fire codes, and housing codes as required by the 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 of the tax exemption in accordance
with Section 8 herein.
Section 5: Conversion of ResidentialUnits
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 by 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
3.9O.10O.Hwithin ]Odays ofthe date ofnotice ofcancellation.
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.
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: $215.50 Page -6 of 13
Record Dxte:6/7/2023 3:01 PM King County, WA
FINAL, April 11, 2023
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 false
pretenses, including providing incorrect or inadequate information to the City
regarding the intended use of the buliding on the property;
2. The Pjec1no|ongercornp|iesvviththerequirennentsofChapter3.SOTK8{;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 canceUation.
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 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 Iie 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.
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: S215.50 Page -7 of 13
Record Dxte:6/7/2023 3:01 PM King County, WA
FINAL, April 1l,2O23
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 of the Property Owner in performance of this
Agreement.
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.
|
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.
�. 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 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 Propertv Owner:
19O0NNorth|akeWay, Suite 337
Seattle, WA 98103
With aCopy To:
Dentons US LLP
Attn: Toni Weinstein
Ennai|:tmnixveinsteinPdentons.conn
2000 McKinney Avenue
Suite 1900
Dallas, TX7S2Ol-l85Q
Prose Southcenter, MFTE Agreement
Instrument Number: 20230607000811 Rco: $215.50 Page -8 of 13
Record Dxte:6/7/2023 3:01 PM King County, WA
DS
FINAL, April 1l,2Q23
To City:
City ofTukwila
Office of the City Clerk
62OOSouthcenterBlvd
Tukwila, WA 98188
With a Copy To:
City ufTukwila
Office of Econornic Development
GZ0O5outhcenterBlvd
Tukwila, WA 98188
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
dates set forth beow:
CITY OF TUKWILA
r—DocuSigned by:
flltr
By
Allan Ekberg, Mayor
APPROVED AS TO FORM:
By
Ora`;72the City Attorney
ATTEST:
5/I9/2023 1 4:03 PM PDT
By
City Clerk
Prose Southcenter, MFTE Agreement
CRP/AR Prose Southcenter Owner, L.L.C.,
Delaware limited liability company
By: CRP/AR Prose Southcenter Venture,
L.L.C. a Delaware limited Ilability company,
Its sole member
By: Prose Southceriter Alliance, LLC, a
Delaware limited liability company, its
administrative member
By
Jere mkah]o|icoeur,K4ember
Instrument Number: 20230607000811 Document:AG Rec: $215.50 Page -9 of 13
Record Date:6/7/2023 3:01 PM King County, WA
OF RESIDENTIAL UNITS
RESIDENTIAL UNIT TOTAL SQ FT
0
RESIDENTIAL AMENITY SQ FT
4,447
RESIDENTIAL CIRCULATION
870
RESIDENTIAL TOTAL SQ FT
5,317
BAKER BLVD
URBAL
ARCHITECTURE
URBANIRURAL
1438 Fair Aew Avenue Ea tl unA
See186 WA 98102
InkvPurbelarchtlectuve.com
www,urbelsichltecture.com
206457-0972
PROSE SOUTHCENTER
500 BAKER BLVD., TUKWILA, WA 98188
LEVEL 1
1" = 601-0"
5/9/2023 9:07:00 AM
Instrument Number: 20230607000811 Document:AG Rec: $215.50 Page -10 of 13
Record Date:6/7/2023 3:01 PM King County, WA
LEVEL 2
# OF RESIDENTIAL UNITS
RESIDENTIAL UNIT TOTAL SQ FT
0
0
RESIDENTIAL AMENITY SQ FT
RESIDENTIAL CIRCULATION
RESIDENTIAL TOTAL SQ FT
2,618
870
3,488
URBAL
ARCHITECTURE
URBANIRURAL
WU I'm!Mew Mama tag DM W.
Seattle, WA 91002
kifolPurbalardiltectufe.com
rnwembalvrAllectur*.corn
T 106.257-0972
PROSE SOUTHCENTER
500 BAKER BLVD., TUKWILA, WA 98188
LEVEL 2
1" = 601-0"
5/9/2023 9:07:01 AM
Instrument Number: 20230607000811 Document:AG Rec: $215.50 Page -11 of 13
Record Date:6/7/2023 3:01 PM King County, WA
LEVEL 3
# OF RESIDENTIAL UNITS
57
RESIDENTIAL UNIT TOTAL SQ FT
45,489
RESIDENTIAL AMENITY SQ FT
15,242
RESIDENTIAL CIRCULATION
5,376
RESIDENTIAL TOTAL SQ FT
66,107
URBALC
ARCHITECTURE
URBANIRURAL
WWI Fairview Avenue East new we
Seattle. WA 95101
InloOinbatarchlteetureseom
www.wbalarcititecturs.conr
T 206-251.0972
PROSE SOUTHCENTER
500 BAKER BLVD,, TUKWILA, WA 98188
LEVEL 3
1" = 6V-0"
5/9/2023 9:07:04 AM
Instrument Number: 20230607000811 Document:AG Rec: $215.50 Page -12 of 13
Record Date:6/7/2023 3:01 PM King County, WA
LEVEL 6
# OF RESIDENTIAL UNITS 57
RESIDENTIAL UNIT TOTAL SQ FT
45,948
RESIDENTIAL AMENITY SQ FT
54
RESIDENTIAL CIRCULATION & SERVICE SQ FT 4,916
RESIDENTIAL TOTAL SQ FT 50,918
mom
URBAL9
ARCHITECTURE
URBANIRURAL
1918 Fairview US, sum leo
Sweetie, WA 98102
Inkeleurbalerdellecturcoore
envvrenbalarchlieelweerom
T 206-257-0972
PROSE SOUTHCENTER
500 BAKER BLVD., TUKWILA, WA 98188
LEVEL 6
1" = 60'-0"
5/9/2023 9:07:16 AM
Instrument Number: 20230607000811 Document:AG Rec: $215.50 Page -13 of 13
Record Date:6/7/2023 3:01 PM King County, WA
LEVEL 7
# OF RESIDENTIAL UNITS 57
RESIDENTIAL UNIT TOTAL SQ FT
45,948
RESIDENTIAL AMENITY SQ FT 54
RESIDENTIAL CIRCULATION & SERVICE SQ FT 4,916
RESIDENTIAL TOTAL SQ FT 50,918
URBALS
ARCHITECTURE
URBANIRURAL
W3 Fa bylaw Manua East
Saattto, WA '8102
Waeurbalarchilactunexam
mwo.urbalarchltactsaexam
2064574)972
PROSE SOUTHCENTER
500 BAKER BLVD., TUKWILA, WA 98188
LEVEL 7
1" = 60'-0"
5/9/2023 9:07:20 AM