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Home My WebLink About1906 Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 1906 BREMERTON HOUSING AUTHORITY PILOT (Payment In Lieu Of Taxes) Finance LEG 12-1 07/02/1975 06/15/2010 Review date for tracking only CtT¥AL COLVIN CO~NU,LCitf of Bremcr torl, ~ District I 239 FOURTH STREET MORRIE DAWKINS BREMERTON, WASHINGTON 98310 District 2 (206) 478 - 5252 HANK WAIBEL District 3 LON OVERSON District 4 SHIRLEY MARTY CRUTCHER MAYOR GENE LOBE District 3 MARY LOU LONG District 6 C.R. "TINY" COLLINS District 7 SPENCER HORNING District 8 RUSS JOHNSON District 9 TO: Russ Johnson, Chairman - Fiscal & Budget C~m,ittee Les Siglin - Rudg~t _amaly~l' Rich Hanna - Treasurer FHEM: Director of Administrative Services RE: P.I.L.O.T. - Housing Authority Enclosed is a copy of the Agreement between the City and the Housing Authority regarding the PILOT. This is in response to a question raised during the Budget Hearings. City of Bremerton KIM/ejs cc: ~/imited to above t/File Gateway to the Olympics and Home of the Puget Sound Naval Shipyard COOPERATION AGREEMENT BREMERTON, WASHINGTON, therein called the "Municipality"), witnesseth: In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. ~henever used in this Agreement: {a) The Term Development shall mean any low-rent housing hereafter developed as an entity by the Local Authority with financial assistance of Housing ~ Urban Development (herein called H.U.D.); excluding, however, any low-rent housing development covered by any contract for loans and annual contributions entered into between the Local Authority and H.U.D., or its predecessor agencies, prior to the date of this Agreement. Cb) The Term "Taxing Body" shall mean the State or any political subdivision or taxing unit thereof in which a development is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to a Development if it were not exempt from taxation. (c) The Term "Shelter Rent" shall mean the total of all charges to all tenants of a Development for dwelling rents and non-dwelling rents Cincluding all other income of such Development), less the cost to the Local Authority of all dwelling and non-dwelling utilities. (d) The Term "Slum" shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals. 2. The Local Authority shall endeavor Ca) t'o secure a contract or contracts with the H.U.D. for loans and annual contributions covering a Development comprising approximately 120 units of low-rent congregate housing and Cb) to develop and administer such Development which shall be located within the corporate limits of the Municipality. The obligations of the parties hereto shall apply to such Project. 3. Ca} Under the constitution and statutes of the State of Washington, the Development is exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. With respect to any Development, so long as either {i) such Development is owned by a public body or governmental agency and is used for low-rent housing purposed, or {ii) any contract between the Local Authority and H.U.D. for loans or annual contributions, or both in connection with such development remains in force and effect, or Ciii) any bonds issued in connection with Development remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon such Development or upon the Local Authority with respect therein. During such period, the Local Authority shall make annual payments therein called "Payments in Lieu of Taxes") in lieu of such taxes and special assessments and in payment for the Public Services and facilities furnished from time to time without other cost or charge for or with respect to such Development. -1- (b) Each such annual Payment in Lieu of Taxes shall be made after the end of the fiscal year established for such Development, and shall be in an amount equal to either (i) ten percent (10%) of the Shelter Rent charged by the Local Authority in respect to such Development during such fiscal year or (ii) the amount permitted to be paid by applicable state law in effect on the date such payment is made, whichever amount is lower. (c) The Municipality shall distribute the Payments in Lieu of Taxes among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the Development were not exempt from taxation bears to the total real property taxes which would have paid to all Taxing Bodies for such year if the Development were not exempt from taxation; Provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the Development were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against any Development assets of the Local Authority shall attach, nor shall any interest or penalties accrue or a~tach on aecount thereof. 4. During the period commencing with the date of the acquisition of any part of the site or sites of any Development and continuing so long as either (i) such Development is owned by a public body or governmental agency and is used for low-rent housing purposes, or (ii) any' contract between the Local Authority and H.U.D. for loans or annual contributions, or both, in connection with such Development remains in force and effect, or (iii) any bonds issued in connection with such Development or:~anies dne~to .M.H~D. fn connection with such Development remain unpaid, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the tenants of such Development (other than the Payments in Lieu of Taxes) shall: (a) Furnish or cause to be furnished to the Local Authority and the tenants or such Development, public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) Vacate such streets, roads, and alleys within the area of such Development as may be necessary in the development thereof, and convey without charge to the Local Authority such interest as the Municipality may have in such vacated areas; and, in so far as it is lawfully able to do so without cost or expense to the Local Authority or to the Municipality, cause to be removed from such vacated areas, in so far as it may be necessary, all public or private utility line and equipment; (c) In so far as the Municipality may lawfully do so, (i) grant such deviations from the building code of the Municipality as are reasonable and necessary to promote economy and efficiency in the development and administration of such Development, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Development as are reasonable and necessary for the development and protection of such Project and the surrounding territory; (d) Accept grants of easements necessary for the development of such Development; and -2- (e) Cooperate with the Local Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the development and adminis- tration of such Development. S. In respect to any Development the Municipality further agrees that within a reasonable time after receipt of a written request therefore from the Local Authority: (a) It will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such Development, together with all storm and sanitary sewer mains in such dedicated areas, after the Local Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with specifications acceptable to the Municipality; (b) It will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding such Development or necessary to provide adequate access thereto (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Development site for such work if such site were privately owned); and (c) It will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to such Development and serving the bounding streets thereof ( in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Development site for such work if such site were privately owned). 6. If by reason of the Municipality's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or to cause to be furnished to the Local Authority or to the tenants of any Development, the Local Authority incurs any expense to obtain such services or facilities then the Local Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due to the Municipality in respect to any Development or any other low-rent housing developments owned or operated by the Local Authority. 7. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to any Development covered by this Agreement. 8. So long as any contract between the Local Authority and H.U.D. for loans (including preliminary loans) or annual contributions, or both, in connection with any Development remains in force and effect, or so long as any bonds issued in connection with any Development or any monies due to H.U.D. in connection with any Development remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of H.U.D. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to each Development so long as the beneficial title to such Development is held by the Local Authority or by any other public body or governmental agency, including M.U.D., authorized by law to engage in the development or administration of low-rent housing developments. If at any time the beneficial title to, or possession of, any Development is held by such other public body or governmental agency, including H.U.D. the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including H.U.D. -5- IN WITNESS ~HEREOF the Municipality and the Local Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. (SEAL) ~/ ~--~f-'~ HOUSING AUTHORITY OF THE CITY OF (SEAL) BREMERTON, WASHINGTON Attest: , ~- · ~- . BY -4-