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Home My WebLink AboutSW SPYGLASS HILL, LLCCITY OF BREMERTON MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT THIS AGREEMENT is entered into this 54day of JAI cW11b , by and between SW Spyglass Hill, LLC (hereinafter referred to as the "OJ ier"), and the CITY OF BREMERTON, a municipal corporation of the State of Washington (hereinafter referred to as the "City"). WITNESSETH: WHEREAS the City has an interest in stimulating new construction or rehabilitation of multi -family housing in Residential Target Areas in order to reduce development pressure on single-family residential neighborhoods, to increase and improve housing opportunities, and to encourage development densities supportive of transit use, and WHEREAS the City has, pursuant to the authority granted to it by Chapter 84.14 RCW, designated various Residential Target Areas for the provision of a limited property tax exemption for new multi -family residential housing, and WHEREAS the City has, through Chapter 3.78 Bremerton Municipal code (BMC), enacted a program whereby property owners may qualify for a Final Certificate of Tax Exemption which certifies to the Kitsap County Assessor that the owner is eligible to receive a limited property tax exemption, and WHEREAS, The Owner is interested in receiving the multiple family property tax exemption for new/rehabilitated multiple family residential housing units in a residential targeted area; and WHEREAS, The Owner has submitted to the City a complete application form in compliance with Chapter 84.14 RCW and Chapter 3.78 BMC. MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - WHEREAS the Owner has submitted to the City preliminary site plans and floor plans for multi -family residential housing to be constructed on said property legally described as: 646 Highland Avenue, in the City of Bremerton, Kitsap County. Assessor's Parcel Number(s): 3712-002-001-0008 3712-002-007-0002 3712-002-008-0001 3713-001-002-0008 3713-001-004-0204 3800-002-001-0001 3800-002-002-0000 3800-002-003-0009 3800-002-004-0008 commonly known as Spyglass Hill Apartments, hereinafter referred to as the "Site," and WHEREAS the City has determined that the housing units will, if completed as proposed, satisfy the requirements for a Final Certificate of Tax Exemption; NOW, THEREFORE, the City and the Owner do mutually agree as follows: 1. The City agrees to issue the Owner a Conditional Certificate of Acceptance of Tax Exemption, upon approval of the building permits. 2. The Owner agrees to complete construction of the agreed upon improvements within three years from the date the City issues the Conditional Certificate of Acceptance of Tax Exemption, or within any extension thereof granted by the City (not to exceed 24 months). 3. The project must comply, with all applicable zoning requirements, land use requirements, design review requirements and all building, fire, and housing code requirements contained in the Bremerton Municipal Code (herein referred to as the "BMC") at the time a complete application for a building permit is approved. 4. The new, multiple -unit housing must provide for a minimum of fifty (50) percent of the space for permanent residential occupancy. The project must include at least ten (10) units of multifamily housing within a residential structure or as part of an urban development. 5. The Owner is requesting an EIGHT (8) year limited property tax exemption. 6. The Owner agrees, upon completion of the improvements and upon issuance by the City of a temporary or permanent certificate of occupancy, to file with the City's Department of Community Development the following: MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - 2 (a) A statement of expenditures made with respect to each multi -family housing unit and the total expenditures made with respect to the entire property; (b) A description of the completed work and a statement of qualification for the exemption; and (c) A statement that the work was completed within the required three (3) year period or any authorized extension. 7. The City agrees, conditioned on the Owner's successful completion of the improvements in accordance with the terms of this Agreement and on the Owner's filing of the materials described in Paragraph 6 above, to file an Eight Year Final Certificate of Tax Exemption with the Kitsap County Assessor. 8. The Owner agrees, within 30 days following the first anniversary of the City's filing of the Final Certificate of Tax Exemption and each year thereafter for a period of twelve years, to file a notarized declaration with the City's Department of Community Development indicating the following: (a) A statement of occupancy and vacancy of the multi -family units during the previous twelve (12) months; (b) A certification that the property continues to be in compliance with this Agreement; and, (c) A description of changes or improvements constructed after issuance of the certificate of tax exemption. (d) Any information needed by the City to file its annual report pursuant to Bremerton Municipal Code (BMC) 3.78.110 and any additional information requested by the City in regards to the units receiving a tax exemption. 9. The parties acknowledge that the units are to be used and occupied for multifamily residential use. The parties further acknowledge that the certificate of occupancy issued by the City is for multifamily residential units. The Owner acknowledges and agrees that the units shall be used primarily for residential occupancy and any business activities shall only be incidental and ancillary to the residential occupancy. 10. If the Owner converts to another use any of the new multi -family residential housing units constructed under this Agreement, the Owner shall notify the Kitsap County Assessor and the City's Department of Community Development within 60 days of such change in use. 11. The Owner agrees to notify the City promptly of any transfer of Owner's ownership interest in the Site or in the improvements made to the Site under this Agreement. MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - 3 12. For purposes of this agreement, "Owner" shall mean the Owners Association of a condominium complex once such association is established which shall be responsible for all reporting requirements required herein on behalf of the owners of individual condominium units. 13. The City reserves the right to cancel the Final Certificate of Tax Exemption should the Owner, its successors or assigns, fail to comply with any of the terms and conditions of this Agreement. 14. The Owner acknowledges its awareness of the potential tax liability involved if and when the property ceases to be eligible for the incentive provided pursuant to this agreement. Such liability may include additional real property tax, penalties and interest imposed pursuant to RCW 84.14.110. 15. Nothing in this Agreement shall permit or be interpreted to permit either party to violate any provision of Chapter 84.14 RCW or BMC Chapter 3.78. 16. No modifications of this Agreement shall be made unless mutually agreed upon by the parties in writing. 17. The Owner acknowledges its awareness of the potential tax liability involved if and when the property ceases to be eligible for the incentive provided pursuant to this agreement. Such liability may include additional real property tax, penalties and interest imposed pursuant to RCW 84.14.110. The Owner further acknowledges its awareness and understanding of the process implemented by the Kitsap County Assessor's Office for the appraisal and assessment of property taxes. The Owner agrees that the City is not responsible for the property value assessment imposed by Kitsap County at any time during the exemption period. 18. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting term or clause, and to this end, the terms of this Agreement are declared to be severable. MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - 4 IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. CITY OF BREMERTON f Property wners: B Y• OL aL— Patty-ant.%i n Its: Andre�peryeer;'l�f f rector Dept. CXmmuAity Development Finance c t: Shannon Corin, City Clerk Form: Lubovich, City Attorney MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - 5 STATE OF WASHINGTON ) ss. County of Kitsap ) N On this day of , 2016, before the undersigned, a Notary Public in and for the state of Washington, duly ommissioned and sworn, personally appeared VAc, Legs"— , to me known to be the authorized signor and the person who executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year first above written. ,,�gNtlrtrlr�n�� 5\ '•••N•••�Ott // 04tSS/0' •ti 9''i NOT,�,��.� R:\LEGAL\Contracts\DCD\MFTAgreement.doc 61.— / NOTARY PUBLICO' _` _ Printed Name: �+' U— MA --s Residing at (39111-1+— My commission expires os - o-1 - 2a l MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT - 6 Return Address: City Clerk City of Bremerton 345 6th Street, Suite 600 Bremerton WA 98337 BREMERTON CITY OF 201707060093 Certificate Rec Fee: $ 75.00 07/06/2017 10:43 AM I Dolores Gilmore. Kitsap Co -Auditor 111111 IN 111111111 11111111111111111111111 AUDITOR/RECORDER'S INDEXING FORM Document Title(s): 1. Final Certificate of 8 Year Property Tax Exemption Reference Number(s) of Documents assigned or released: Grantor(s): 1. City of Bremerton Additional names on page of document. Grantee(s): 1. SW Spyglass Hill, LLC ❑ Additional names on page of document. Legal Description: Sec 13 Township 24 Range I SW Qtr (abbreviated) X❑ Additional legal is on page 2 of document. Assessor's Property Tax Parcel/Account Number: 3712-002-001-0107 Page: 1 of 3 II � FINAL CERTIFICATE OF 8 -YEAR PROPERTY TAX EXEMPTION TAX PARCEL ID#37 12-002-00 1-0 107 FOR SPYGLASS HILL APARTMENTS, LLC TAX EXEMPTION BEGINS: TAX YEAR 20 18 TAX EXEMPTION EXPIRES: TAX YEAR 2025 CONGRATULATIONS ON COMPLETING YOUR 8 -YEAR PROPERTY TAX EXEMPTION FOR THE HOUSING DEVELOPMENT LOCATED AT 646 HIGHLAND AVENUE, BREMERTON, WA, THE TAX EXEMPTION ON THE 80 NEW RESIDENTIAL UNITS BEGINS THE CALENDAR YEAR FOLLOWING COMPLETION OF THE PROJECT AS DETERMINED BY THE KITSAP COUNTY ASSESSOR'S OFFICE. THE TAX EXEMPTION REMAINS IN EFFECT FOR 8 YEARS AS LONG AS THE PROPERTY CONTINUES TO BE USED FOR HOUSING AND THE PROPERTY OWNER PROVIDES THE CITY WITH ANNUAL UPDATES AS REQUIRED IN THE AGREEMENT DATED JULY 15, 201 6. L. CITY OF EVELOPMENT DATE 7017 �i Spyglass Hill Apartments, LLC Tax ID #3712-002-001-0107 LEGAL DESCRIPTION: PARCEL 1: LOT 1, BLOCK 2, BENBENNICK'S FIRST ADDITION TO THE TOWN OF BREMERTON, AS RECORDED IN VOLUME 2 OF PLATS, PAGE 64, RECORDS OF KITSAP COUNTY, WASHINGTON. >>> PARCEL 2: LOT 7, BLOCK 2, BENBENNICK'S FIRST ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 64, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT THE EAST 13 FEET THEREOF FOR WASHINGTON AVENUE. >>> PARCEL 3: LOT 8, BLOCK 2, BENBENNICK'S FIRST ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 64, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT THE EAST 13 FEET THEREOF FOR ROAD. >>> PARCEL 4: LOTS 2 AND 3, BLOCK 1, BENBENNICK'S SECOND ADDITION TO THE TOWN OF BREIV[ERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 79, IN KITSAP COUNTY, WASHINGTON; EXCEPT THE EAST 13 FEET OF LOT 3 CONDEMNED TO THE CITY OF BREMERTON FOR ROAD IN KITSAP COUNTY SUPERIOR COURT CAUSE NO. 54859. >>> PARCEL 5: PARCEL A: LOT 4, BLOCK 1, BENBENNICK'S 2ND ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 79, IN KITSAP COUNTY, WASHINGTON; EXCEPT THE WEST 6 FEET; AND EXCEPT THAT PORTION CONVEYED TO THE CITY OF BREMERTON, AS DISCLOSED BY INSTRUMENT RECORDED UNDER AUDITOR'S FILE NO. 956437; PARCEL B: LOT 5, BLOCK 2, CODER'S ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 59, IN KITSAP COUNTY, WASHINGTON; EXCEPT THAT PORTION CONVEYED TO THE CITY OF BREMERTON, AS DISCLOSED BY INSTRUMENT RECORDED UNDER AUDITOR'S FILE NO. 956436. >>>PARCEL 6: LOT 1 AND THE NORTH 10.66 FEET OF LOT 2, BLOCK 2, SCHMID'S ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 14, RECORDS OF KITSAP COUNTY, WASHINGTON. >>> PARCEL 7: LOT 2, BLOCK 2, SCHMID'S ADDITION TO THE TOWN OF BREMERTON, ACCORDING TO THE PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 14, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT THE NORTH 10.66 FEET OF SAID LOT 2. >>> PARCEL 8: LOT 3, BLOCK 2 OF SCHMID'S ADDITION TO THE TOWN[ OF BREMERTON, AS PER PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 14, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT THE EAST 13 FEET CONDEMNED TO THE CITY OF BREMERTON FOR ROAD IN KITSAP COUNTY SUPERIOR COURT CAUSE NO. 54859. >>> PARCEL 9: LOT 4, BLOCK 2 OF SCHMID'S ADDITION TO THE TOWN OF BREMERTON, AS PER PLAT RECORDED IN VOLUME 3 OF PLATS, PAGE 14, RECORDS OF KITSAP COUNTY, WASHINGTON; EXCEPT THE EAST 13 FEET CONDEMNED TO THE CITY OF BREMERTON FOR ROAD IN KITSAP COUNTY SUPERIOR COURT CAUSE NO. 54859.