030-17 - Ovah, LLC - ContractContract No. 030-17
CITY OF PORT ORCHARD
MULTI -FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this a Yday of 1F2 ,Byte#rL� , 20 by and
between d V (hereinafter referred to as the "Owner"), and the
CITY OF PORT ORC ARD, 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 Chapter 3.48 Port Orchard Municipal code (POMC),
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 multifamily housing within a residential structure
or as part of an urban development. In the case of existing multifamily housing that is occupied
or which has not been vacant for twelve (12) months or more, the multifamily housing project
must also provide for a minimum of four (4) additional multifamily units for a total project of at
least ten (10) units including the four (4) additional units. Existing multifamily housing that has
been vacant for twelve (12) months or more does not have to provide additional units.
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:
_3 o —1t& 6AL.4i j DO 5 , , in the City of Port Orchard, Kitsap County.
Assessor's Parcel Number(s) 3D-4 CNN - 3--062 24gcbmmonly known as
6VA-�W. LLB JIMD70,01C &&t41 Aft? N43►nhereinafter referred to
as the "Site," and
MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT
WHEREAS the City has determined that the improvements 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 construct on the Site multi -family residential housing
substantially as described in the most recent site plans, floor plans, and elevations on file with the
City as of the date of administrative approval of this Agreement.
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 Port Orchard Municipal Code (herein referred to as the "POMC") at the time a
complete application for a building permit is received.
4. Existing dwelling units proposed for rehabilitation must fail to comply with one or
more standards of the applicable State or City building codes.
5. The new, converted, or rehabilitated multiple -unit housing must provide for a
minimum of fifty (50) percent of the space for permanent residential occupancy. The project,
whether new, converted, or rehabilitated multiple -unit housing, must include at least ten (10)
units of multifamily housing within a residential structure or as part of an urban development. In
the case of existing multifamily housing that is occupied or which has not been vacant for twelve
(12) months or more, the multifamily housing project must also provide for a minimum of four
(4) additional multifamily units for a total project of at least ten (10) units including the four (4)
additional units. Existing multifamily housing that has been vacant for twelve (12) months or
more does not have to provide additional units.
6. 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.
7. The Owner is requesting an EIGHT or a _)� TWELVE year (check one)
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 3.48.040
POMC).
8. 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
(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; 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.
9. 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 an eight or twelve year, as applicable, Final
Certificate of Tax Exemption with the Kitsap County Assessor.
10. The Owner agrees, within 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 or twelve
years, as applicable, 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; and,
(c) A description of changes or improvements constructed after issuance of the
certificate of tax exemption.
(d) A statement of the income of each renter household at the time of initial
occupancy and the income of each initial purchaser of owner -occupied units at the time of
purchase for each of the units receiving a tax exemption and a summary of these figures.
(e) Any information needed by the City to file its annual report pursuant to
Port Orchard Municipal Code (POMC) 3.48.110 and any additional information requested by
the City in regards to the units receiving a tax exemption.
11. 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.
12. 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.
MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT
13. 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.
14. 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.
15. The City reserves the right to cancel the Final Certificate of Tax Exemption should
the Owner, its successors and assigns, fail to comply with any of the terms and conditions of
this Agreement.
16. Nothing in this Agreement shall permit or be interpreted to permit either party
to violate any provision of Chapter 84.14 RC W or POMC Chapter 3.48.
17. No modifications of this Agreement shall be made unless mutually agreed upon
by the parties in writing.
18. 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.
19. 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.
20. This Agreement shall be a covenant running with the land and shall be binding on
the assigns, heirs and successors of the Owner.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the
day and year first above written.
CITY OF PORT OR RD `0A`` . T`
A
jg
Robert Putaansuu, Mayor
:..
Dept. of Community Development
iP G t o Chq�', Property Own s:
O'
y:
L�►L = Scott Fi simmons
o.y�.
0°:' ts:
Ry:
Mark Nordlie
Its:
MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT
r:nocJD4)ement1
rer
Attest: -?
'3randy Rinearson, CIVIC, City Clerk
Approved as to Form:
U.
AnCkaZ_e's_,'C"it"y Attorney
STATE OF WAS"INGTON )
) ss.
County oftszp
On this :)-� day of .20 before the undersigned, a Notary Public in and
for the State of Washington, duly commissioned and sworn, personally appeared
Scott Fitzsimmons and Mark Nordlie, to me known to be the authorized signors and the persons
who executed the foregoing instrument, and acknowledged said instrument to be the free and
voluntary act and deed of said persons, for the usual purposes therein mentioned.
WITNESS my hand and official seal hereto affixed the day and yearfirstabove written.
NOTGARY PUBLICv_�._...
Notary Public)
r state of Washington Printed Name:_f�L�o,
RONALD 0 CUELLAR ?
My Appointment Expires Aug 26, 2017 ; Residing at ,•
f, ..7 My commission expires _Pi���'�, 1-
(notary seal)
MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT