HomeMy WebLinkAbout2512_ WHEATON WAY APTS
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 1
CITY OF BREMERTON
MULTI-FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this ____ day of _______________, 20__, by and
between LP2 WHEATON WAY 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 #: 3967-002-021-0006: THAT PORTION OF PARCEL 21, BLOCK 2, THIRD
ADDITION TO SHERIDAN PARK, AS PER PLAT RECORDED IN VOLUME 8 OF PLATS,
PAGES 64, 65, 66 AND 67, RECORDS OF KITSAP COUNTY, WASHINGTON, DESCRIBED
AS FOLLOWS: BEGINNING AT THE SOUTHERLY CORNER OF SAID PARCEL 21;
THENCE SOUTH 87*42'59" EAST 20.45 FEET; THENCE ON A CURVE TO THE LEFT
WITH A RADIUS OF 149.25 FEET, A DISTANCE OF 235.33 FEET; THENCE NORTH
1*45'07" EAST 255 FEET; THENCE NORTH 87*23'21" WEST TO THE WEST MARGIN OF
SAID PARCEL 21; THENCE SOUTHERLY, WESTERLY AND SOUTHERLY ALONG SAID
WEST MARGIN TO THE POINT OF BEGINNING. TOGETHER WITH AN EASEMENT
FOR ACCESS AND PARKING FOR STAFF, PATIENTS AND CLINIC PERSONNEL AS
MORE FULLY DESCRIBED UNDER AUDITOR'S FILE NO. 7712010114, BEING A
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26April15th
MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 2
PORTION OF PARCEL 21, BLOCK 2, THIRD ADDITION TO SHERIDAN PARK, VOLUME
8, PAGES 64, 65, 66 AND 67, RECORDS OF KITSAP COUNTY, WASHINGTON.,
Assessor’s Parcel Number 3967-002-021-0006, commonly known as 2512 Wheaton
Way Apartments Project, consisting of the above-referenced parcel, 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.
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:
(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;
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MULTI-FAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT - 3
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.
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.
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