HomeMy WebLinkAboutRIDDELL ROAD PHASE 1DocuSign Envelope ID: 8608lF6E-D6A2-4730-A725-87134797895E
CITY OF BREMERTON
MULTI -FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this 'Aas} day of S&p%aw V e.r , 20 Zoby and
between RIDDELL ROAD ASSOCIATES, 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 the first phase of multi -family residential housing to be constructed on said property legally
described as:
Parcel # 012401-2-195-2007: THE EAST HALF OF THE NORTHWEST QUARTER
OF THE NORTHWEST QUARTER, SECTION 1, TOWNSHIP 24 NORTH, RANGE 1
EAST, W.M., IN KITSAP COUNTY WASHINGTON,
EXCEPT THE NORTH 13 ACRES THEREOF,
EXCEPT ANY PORTION WITHIN THE PLAT OF HOLLIS TERRACE, AS PER
PLAT RECORDED IN VOLUME 19 OF PLATS, PAGE 98, RECORDS OF SAID
COUNTY, WASHINGTON;
EXCEPT RIDDELL ROAD ON THE NORTH,
EXCEPT ALMIRA DRIVE ON THE EAST,
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 1
DocuSign Envelope ID: 86081 RE-NA24730-A725-87134797895E
AND EXCEPT ANY PORTION IN MAPLE STREET.
TOGETHER WITH RESULTANT LOT 2 OF BOUNDARY LINE ADJUSTMENT
RECORDED UNDER AUDITOR'S FILE NO 201811080112, RECORDS OF KITSAP
COUNTY, WASHINGTON, BEING A PORTION OF THE NORTHWEST QUARTER
OF THE NORTHWEST QUARTER, SECTION 1, TOWNSHIP 24 NORTH, RANGE 1
EAST, W.M., IN KITSAP COUNTY, WASHINGTON,
EXCEPT THE FOLLOWING PORTION OF SAID RESULTANT LOT 2:
BEGINNING NORTHWEST CORNER OF SAID LOT 2;
THENCE SOUTH RIGHT OF WAY LINE OF RIDDELL ROAD NE, 210.14;
THENCE LEAVING SAID NORTH LINE, SOUTH 196504" WEST, 169.53 FEET;
THENCE NORTH 88042'56" WEST, 316.86 FEET TO THE WEST LINE OF SAID
LOT 2; THENCE NORTH 0392' 19" EAST ALONG SAID WEST LINE, 169.66 FEET
TO THE POINT OF BEGINNING.
CONTAINS 762,657 SQUARE FEET, MORE OR LESS.
Assessor's Parcel Numbers) 012401-2-195-2007, commonly known as the Riddell Road
Apartments Phase 1, 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 (3) years from the date the City issues the Conditional Certificate of Acceptance of
Fax 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.
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 2
DocuSign Envelope ID: 86081 HE-DM24730-A725-87134797895E
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 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.
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 3
DocuSign Envelope ID: 86081 RE-D6A2-4730-A725-87134797895E
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.
12. 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 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.
16. The City and Owner agree that the Owner may assign this Agreement to a third -
party. The Owner shall not assign this Agreement without first obtaining the written consent of
the City, which consent of the City shall not be unreasonably withheld. Acceptance of such an
assignment by a third -party is acceptance of all the terms, conditions, provisions, rights,
responsibilities, and liabilities of the 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.
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 4
DocuSign Envelope ID:8608lF6E-D6A2-4730-A725-87134797895E
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
CITY OF BREMERTON
�:-Mayor
nnDo__cu1151{In��ed-- by:
04
Andrea Spencer, Director
Dept. of Community Development
Docu3lgned by:
Michae Ri ey, Director
Finance Department
Attest:
• e kj;City- Clerk
*DVt;r
RIDDELL ROAD ASSOCIATES, LLC
By:
Approved as to Form:
DocuSlgned by:
J,Aa Agreqeqg!au�A
Roger Lubovich, City Attorney
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 5
STATE OF WASHINGTON )
ss.
County of Kitsap )
On this / day of ) edf M44 2(Xbefore the undersigned, a Notary Public in and
fq
r the state of Washington, duly commissioned and sworn, personally appeared
to me known to be the authorized signor and the person who executed the
fore oing instrument, and acknowledged said instrument to be the free and voluntary act and
deed of said person, for the uses and purposes thWin mentioned.
WITNESS my hand and official seal
Of Washo5:9"wNI
Shannon Rai'l
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R:\LEGAL\Contracts\DC D\M FTAgreem ent.doc
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affixed the day and
OT�RY PUB
Printed Name
Residing at
My commission expires
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 6
first above written.
lie 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. 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.
Be 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.
l4. 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 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.
16. The City and Owner agree that the Owner may assign this Agreement to a tliird-
party. The Owner shall not assign this Agreement without first obtaining the written consent of
the City, which consent of the City shall not be unreasonably withheld. Acceptance of such an
assignment by a third -party is acceptance of all the terms, conditions, provisions, rights,
responsibilities, and liabilities of the 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 RIDDELL ROAD ASSOCIATES, LLC
Greg Wheeler, Mayor
Its:
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 4
DocuSign Envelope ID: 86081 F6E-D6A24730-A725-87134797895E
STATE OF WASHINGTON )
ss.
County of Kitsap
On this ko r' `day of ztiG' �ti`� I, 20)<e, before the undersigned, a Notary Public in and
for the state of Washington, duly commissioned and sworn, personally appeared �111
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 PUBLI -
Printed Name: i '
Residing at ZV
My commission expires
R;ILEGAL\ContractslDCD\M FTAgreement.doc
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 6
DocuSign Envelope ID: 86081F6E-D6A2-4730-A725-87134797895E
Exhibit 1
MULTI -FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 7