HomeMy WebLinkAboutMARINA SQUARE CITY OF BREMERTON
MULTI-FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT,�
THIS AGREEMENT is entered into this J1 "day of*JY1b-c-re , 20,11 by and
between SW MARINA SQUARE 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").
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 Bremerton Municipal Code Chapter 3.78 ("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 for no
fewer than ten (10) units of new/rehabilitated multi-family housing within a residential structure
or as part of an urban development; and
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:
Parcel # 3718-003-009-0200: RESULTANT PARCEL 3 OF BOUNDARY LINE
ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO. 200412010303, AND
AS DEPICTED IN VOLUME 62 OF SURVEYS, PAGE 141 UNDER AUDITOR'S
FILE NO. 200412010304, BEING A PORTION LOT 9, ALL OF LOT 10 AND A
PORTION OF LOT 11, BLOCK 3, TOWN OF BREMERTON, ACCORDING TO
PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 30, RECORDS OF KITSAP
COUNTY, WASHINGTON; TOGETHER WITH VACATED ALLEY WAY WHICH
ADJOINS ON THE EAST; AND A PORTION OF GOVERNMENT LOT 3, SECTION
13, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY,
WASHINGTON.
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 1
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Parcel # 3718-003-001-0109: RESULTANT PARCEL 2 OF BOUNDARY LINE
ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO. 200412010303, AND
AS DEPICTED IN VOLUME 62 OF SURVEYS, PAGE 141 UNDER AUDITOR'S
FILE NO. 200412010304, BEING A PORTION OF LOT 1, ALL OF LOTS 2, 3, 4, 5, 6,
7 AND 8, AND A PORTION OF LOT 9, BLOCK 3, TOWN OF BREMERTON,
ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 30,
RECORDS OF KITSAP COUNTY, WASHINGTON; TOGETHER WITH VACATED
ALLEY WAY WHICH ADJOINS ON THE EAST; AND A PORTION OF
GOVERNMENT LOT 3, SECTION 13, TOWNSHIP 24 NORTH, RANGE 1 EAST,
W.M., KITSAP COUNTY, WASHINGTON.
Assessor's Parcel Number(s) 3718-003-009-0200 and 3718-003-001-0109, commonly
known as Marina Square, hereinafter referred to as the "Site;"
WHEREAS the parties intend and agree that this Agreement, and all of its rights and
duties, shall be fully assignable by the Owner; 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 (3) 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 twenty-four
(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:
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 2
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(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;
(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 (8) year Final Certificate of Tax
Exemption with the Kitsap County Assessor.
8. The Owner agrees, within thirty (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
EIGHT (8) 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;
(c) A description of changes or improvements constructed after issuance of
the certificate of tax exemption; and
(d) Any information needed by the City to file its annual report pursuant to
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 multi-
family residential use. The parties further acknowledge that the certificate of occupancy issued
by the City is for multi-family 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 sixty (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.
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 3
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12. Failure by Owner to comply in any material respect with any of the terms and
conditions of this Agreement for a period of thirty (30) days after written notice from the City
describing such default, or such longer period as may be reasonably necessary in the case of a
default not curable by the exercise of due diligence within such 30-day period (or such longer
period as may be required if such failure requires work to be performed, acts to be done or
conditions to be removed which are otherwise outside the control of Owner) provided that
Owner shall have commenced to cure such default within such 30-day period and shall complete
such cure as quickly as reasonably possible with the exercise of due diligence, shall be an event
of default of this Agreement (an"Event of Default"). Upon the occurrence of an Event of
Default, 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.
13. Nothing in this Agreement shall permit or be interpreted to permit either party to
violate any provision of Chapter 84.14 RCW or Chapter 3.78 BMC.
14. No modifications of this Agreement shall be made unless mutually agreed upon
by the parties in writing.
15. The Owner acknowledges its awareness of the potential tax liability involved if
and when the Site 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.
16. Owner and City agree that Owner may assign this Agreement and transfer its title
and interest in the Site to any affiliate of Owner including, without limitation, Sound West
Opportunity Zone Fund I (the "Affiliate"), and the Affiliate will accept all the provisions, rights
and responsibilities contained in this Agreement.
17. 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 SW MARINA SQUARELC
B J&3 r
Greg th:eler, Mayor Its: r"r, `sx,>
MULTI-FAMILY HOUSING LIMITED
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rdrea .encer IF tor
Dept. of Co 'unit Development
, _
DeWayne .'itts, P rector
Finance U epart 'ent
Attest: Approved as to Form:
7-7/ *
/11Angela oods, City Clerk Roger Lubovich Cit Attorne
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 5
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STATE OF WASHINGTON )
) ss.
County of Kitsap )
On this j k day of , 201,, before the undersigned, a Notary Public in and
for the state of Washington, duly commissioned and sworn, personally appeared
, 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.
CYG
"AI • ` ""` `a" NOTARY PUBLIC, ASA
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MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 6
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