070-23 - Tom & Laurie, LLC - ContractCITY OF PORT ORCHARD
Agreement Rec Fee: $ 210.50
09/11/2023 11:22 AM
Paul Andrews, Kit
sap Co Auditor
Name and Mailing Address
City of Port Orchard -Clerk's Office
216 Prospect Street
Port Orchard, WA 98366
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Type or print legibly.
202309110086
Document Title(s): Multifamily Housing Limited Property Tax
Exemption Agreement
Auditor's File Number of Document (s) Referenced:
Grantor(s) person(s) that conveys, sells or grants interest in property:
City of Port Orchard
Page: 1 of 8
Grantee(s) person that buys, receives or to whom conveyance of property is made:
Tom & Laurie, LLC
Abbreviated Legal Description:
• Quarter, Quarter, Section, Township, Range (and Government lot # if applicable); OR
• Plat/Condo Name, lot or unit number, building or block number; OR
• Short Plat, Large Lot number, lot number and auditor file number
THE WEST THREE ACRES OF THE SOUTH HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 2, TOWNSHIP 23 NORTH, RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON
Assessor's 14 digit Tax Parcel Number 02230 1-4-039-2003
04/25/14
CITY OF PORT ORCHARD
MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this.�)day of _ 2023, by and between Tom
& Laurie, LLC (hereinafter referred to as the "Owner"), and4he City of Port Orchard, 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 orderto 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 multifamily 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 multifamily 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 more particularly described in City of Port Orchard Permit Number
PW22-021 which is incorporated by reference herein (the "Project") to be constructed on said
property (the "Site") legally described as:
THE WEST THREE ACRES OF THE SOUTH HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST
QUARTER OF SECTION 2, TOWNSHIP 23 NORTH, RANGE 1 EAST,
W.M., IN KITSAP COUNTY, WASHINGTON; EXCEPT THE SOUTH 30
FEET THEREOF CONVEYED TO KITSAP COUNTY FOR GEIGER ROAD
(NOW SEDGWICK ROAD) BY DEEDS RECORDED UNDER RECORDING
NOS. 180722 AND 951950; AND EXCEPT THE WEST 30 FEET
THEREOF CONVEYED TO KITSAP COUNTY FOR EXTENSION OF
COUNTY ROAD NO. 256 BY DEED RECORDED UNDER RECORDING
NO. 304246; EXCEPT THAT PORTION CONVEYED TO THE STATE OF
WASHINGTON FOR SR160, SR16 TO BRASCH RD SE UNDER
AUDITOR'S FILE NO. 200509090134, >>>EXCEPT THAT PORTION
CONVEYED TO KITSAP COUNTY FOR RAMSEY ROAD SE AS
DESCRIBED UNDER AUDITOR'S FILE NO. 304246, VOLUME 257,
PAGE 179, RECORDS OF KITSAP COUNTY, WASHINGTON.
Kitsap County Tax Assessor Parcel No. 022301-4-039-2003 located at
1489 SE Sedgwick Road in the City of Port Orchard, Kitsap County,
Washington.
WHEREAS, the City has determined that the improvements will, if completed as proposed,
satisfy the requirements of 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 under the terms of this Agreement.
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 by the City.
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 agrees to complete construction of the agreed upon improvements
within three years from the date of approval of its application as described in POMC 3.48.080(2), or
within any extension thereof granted by the City.
6. The Owner is requesting an eight -year limited property tax exemption.
7. 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 request to the entire site;
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,
8. 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 the preceding paragraph, to file an eight or twelve year (as applicable) Final
Certificate of Tax Exemption with the Kitsap County Assessor.
9. 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 years to
file a notarized and sworn declaration with the City's Department of Community Development
stating all of 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 has not changed use and continues to be in
compliance with this Agreement and with Chapter 3.48 POMC; and
C. A description of changes or improvements constructed after issuance of the
certificate of tax exemption;
d. The total monthly rent of each multifamily housing unit rented or the
total sale amount of each unit sold during the 12 months ending with the anniversary date;
e. A breakdown of the number, type, and specific multifamily housing units
rented or sold during the 12 months ending with the anniversary date;
f. The value of the tax exemption for the project;
g. 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;
h. Any information needed by the City to file its annual report pursuant to
POW 3.48.120 and any additional information requested by the City in regard to the units receiving
a tax exemption.; and
i. Any additional information requested by the city pursuant to meeting any
reporting requirements under Chapter 84.14 RCW.
10. 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 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.
11. 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.
12. 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.
13. For purposes of this Agreement, "Owner" shall mean the Property Owner if the
development is comprised of rental units or shall mean the Owners Association of a condominium
complex (if the development contains any ownership units) once such association is established.
The Owner shall be responsible for all reporting requirements required herein on behalf of the
owners of individual condominium units, if applicable.
14. If the Project includes any owner -occupied units, the Owner is required to form an
Owner's Association to be organized under RCW 64.34.300 for all owner -occupied units within the
development. Such organization shall remain operational and in effect until at least the length of
the exemption period has expired and the final report is filed with the City. This Owner's Association
shall assume the responsibility for collecting from all individual unit owners the information and
documents required to complete the annual reporting requirements and for filing the required
annual report with the city pursuant to Section 9 of this Agreement and Chapter 3.48 POMC.
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. If the exemption is cancelled for non-compliance, Owner acknowledges that state law
requires that an additional real property tax is imposed in the amount of: (1) the difference between
the tax paid and the tax that would have been paid if it had included the value of the non -qualifying
improvements, dated back to the date that the improvements became non -qualifying; (2) a penalty
of 20% , of the difference calculated under paragraph 1 of this section; and (3) interest at the
statutory rate on delinquent property taxes and penalties, calculated from the date the tax would
have been due without penalty if the improvements had been assessed without regard to the
exemptions provided by Chapter 84.14 RCW and POMC Chapter 3.48 POMC. Applicant
acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and
penalty, becomes a lien on that portion of the Property on which the Project is constructed and
attaches at the time the portion of the Property is removed from multifamily use or the amenities
no longer meet applicable requirements, and that the lien has priority to and must be fully paid and
satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with
which the Property may become charged or liable. Applicant further acknowledges that RCW
84.14.110 provides that any such lien may be foreclosed in the manner provided by law for
foreclosure of liens for delinquent real property taxes.
16. Nothing in this Agreement shall permit or be interpreted to permit either Party to
violate any provision of Chapter 84.14 RCW or POW 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, and 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. The Owner acknowledges and agrees that the City has the right to audit or review
appropriate records to assure compliance with this Agreement and POMC Chapter 3.48 and to
perform evaluations of the effectiveness of the Multifamily Tax Exemption program. The Owner
agrees to make appropriate records available for review or audit upon seven -days written notice by
the City.
20. All notices to be given pursuant to this Agreement shall be in writing and shall be
deemed given when hand -delivered within normal business hours, when actually received by
facsimile transmission, or two business days after having been mailed, postage prepaid, to the
parties hereto at the addresses set forth below, or to such other place as a party may from time to
time designate in writing.
CITY: Department of Community Development
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
Attn: Director
OWNER: Tom Meyers, Jr.
Tom & Laurie, LLC
P.O. Box 997
Port Orchard WA 98366
21. 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.
22. This Agreement shall be recorded at the Owner's expense and 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 ORCHARD
v ,
Robert Putaansuu, Mayor
PROPERTY OWNERS
Its:
[}nu�5ignc9 by:
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Nick Bona, Director By:
Dept. of Community Development Its:
/Docu3lgnad by!
1"DAL (i''6& V'
Noah Crocker
Finance Director
Attest:
ODcuSignad by:
Brandy Wallace, MMC, City Clerk
Approved as to Form:
�Docufttwd by:
Charlotte A. Archer, City Attorney
NOTARY BLOCK FOR TOM & LAURIE, LLC
STATE OF WASHINGTON
) ss.
COUNTY OF 11540
I certify that I know or have satisfactory evidence that -Mgi 1kj txq is the person
who appeared before me, and said person acknowledged that (he/she) signed this instrument,
on oath stated that (he/she) was authorized to execute the instrument and acknowledged it as
the !1Oda of Tom & Laurie, LLC to be the free and voluntary act of such party for the
uses and purposes mentioned in the instrument.
Dated: Aqusf W r 20 Z3
JENNIFER C. LEAHY
Notary Public
State of Washinppton
License Number 1
1 2545
My Commission Expires
November 19, 2024
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NOTARY PUBLIC in and for the
State a Washington, residing at:
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My Commission expires: j( fg 2
NOTARY BLOCK FOR CITY OF PORT ORCHARD
STATE OF WASHINGTON )
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Robert Putaansuu is the person
who appeared before me, and said person acknowledged that (he she) signed this instrument,
on oath stated that he was authorized to execute the instrument and acknowledged it as the
Mayor of Port Orchard to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument.
Date, l l if • 20_a3
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