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AUG 2 � 20i4
CITY OF BREMERTON - �
M[JLTI-FAMILY HOUSING LIMITED PROPERTY �j�of�remerton, DCm
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this 23rd day of July 2014,by and between
Clearview Sheldon,LLC (hereinafter referred to as the "Owner"), and the CITY OF
BREMERTON, a municipal corporation of the State of Washington (hereinafter referred to as
the"City").
WTTNESSETH:
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.
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:
1217 Sheldon Boulevard, in the City of Bremerton, Kitsap County.
Assessor's Parcel Number(s) 132401-2-034-2008, 132401-2-033-2009, 3784-002-008-
0004, 3784-002-007-0005, 132401-2-081-2000, 132401-2-030-2002, 3784-002-001-
OOOI, ]32401-2-032-2000
comm�nly known as Evergreen Pointe, 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;
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT- 1
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 reyuirements, 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"j at the time a
complete application for a building permit is approved.
4. The new, multiple-unit housing must provide for a minimum of tifty(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 a TWELVE(12) year limited property tax exemption. (If a
twelve year exemption, the Owner commits to renting or selling at least twenty percent (20%) of
the multifamily housing units constructed on the site as housing units affordable for low or
moderate-income households as defined by Section 3.78.040 BMC).
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:
(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 yualification for the
exemption; and
(c) A statement that the work was completed within the required three (3) year
period or any authorized extension.
(d) If applicable, that the project meets the affordable housing requirements as
described in RCW 84.14.020.
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 8 above, to file a twelve year Final Certificate of Tax
Exemption with the Kitsap County Assessor.
8. The Owner agrees, within 30 days following the tlrst anniversary of the City's filing
of the Final Certificate of Tax Exemption and each year thereafter for a period of twelve years, to
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT- 2
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.
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.l 4.110.
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.
� MULTIFAMII..Y HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT- 3
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.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.
CITY OF BREMERTON Propert Owners: l.X�«-�� ��� ��L
.
` By: w����7
Patt ent, r Its:
ndre Spe e , Director
De t. of mmunity Development
l�.J
y s , Director
Financ De artment
Attest: �
annon Corin, City Clerk
Approved as to Form:
R er Lubovich, ' orney
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 4
STATE OF WASHINGTON )
) ss.
County of Kitsap )
nd
On this 22 day of , 20L�before the undersigned, a Notary Public in and
r the State of Washington, duly commissioned and sworn, personally appeared
Cla �.,�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.
.
NOTARY U IC
Notary PuDlic printed Nam *G' � 1
State of Washmgton
DAVID J RODGERS Residing at C�tll9
My Appointment Expires Dec 15,2014 My commission expires �2v�y
[nota seal]
R:\LEGAL\Coniracts\DC D\MFTAgree ment.doc
MULTIFAMII.Y HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT- 5