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HomeMy WebLinkAbout6020 ORDINANCE NO. 6020 AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON, AMENDING AUBURN CITY CODE SECTION 3.94.040 RELATING TO MULTI-FAMILY PROPERTY TAX EXEMPTION WHEREAS, in 1995 the Washington State Legislature adopted Chapter 84.14 RCW, to encourage increased residential opportunities in cities required to plan under the Growth Management Act, by providing for special property tax valuation for eligible multi-family housing in targeted urban, residential areas; and WHEREAS, Chapter 84.14 further authorized cities with a population of at least thirty-thousand to adopt procedures to implement the special property tax valuations; and WHEREAS, on August 4, 2003, the Auburn City Council approved Ordinance No. 5779 establishing a multi-family tax abatement program for the Auburn urban center subject to certain requirements; and WHEREAS, Ordinance No. 5779 applies only newly constructed units in the target area with a minimum investment of $150,000 per unit annually adjusted for inflation by the Consumer Price Index as of the passage date of Ordinance No. 5779; and WHEREAS, pressures on housing costs in the region continue to increase the median sale price of residential units with the median sales price of a condominium unit in King County increasing from $202,000 in December 2004 to $222,990 in December 2005; and WHEREAS, the Consumer Price Index is inadequate to account for the increases in housing costs for the region; and WHEREAS, increasing the base minimum investment amount for these units from $150,000 to $200,000 will assist the City in implementing the vision for high quality residential development in its downtown and will help ensure that multi-family units constructed in Auburn's downtown will be of a value consistent with those found in other urban centers. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN DO ORDAIN as follows: Ordinance No. 6020 April 24, 2006 Page 1 SECTION ONE. AMENDMENT TO CITY CODE. That Auburn City Code section 3.94.040 is hereby amended to read as follows: 3.94.040 Tax Exemption - Duration - Valuation - Exceptions. A. Exemption, Duration of. The value of improvements for property qualifying under this Chapter, is exempt from ad valorem property taxation for ten (10) successive years beginning January 1 st of the year immediately following the calendar year of issuance of the Final Certificate of Tax Exemption. B. Limits on exemption. The exemption does not apply to the value of land or to the value of non-housing improvements, nor does the exemption apply to increases in assessed valuation of land and non-qualifying improvements. This Chapter also does not apply to increases in assessed valuation made by the assessor on non-qualifying portions of building and value of land, nor to increases made by lawful order of a county board of equalization, the Department of Revenue, or a county, to a class of property throughout the county or specific area of the county achieve the uniformity of assessment or appraisal required by law. C. Only newly constructed units with a minimum investment of $150,000-,$200,000 per unit annually adjusted for inflation by the Consumer Price Index.1-as of the passage effective date of the ordinance codified in this chapter Ordinance No. 6020 shall qualify for the exemption. (Ord. 5779 ~ 1, 2003.) SECTION TWO. GENERAL SEVERABILITY. That if any provision of this Ordinance or the application thereof to any person or circumstance is held to be invalid, the remainder of such code, ordinance or regulation or the application thereof to other person or circumstances shall not be affected. SECTION THREE. RATIFICATION. That any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. SECTION FOUR. IMPLEMENTATION. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Ordinance No. 6020 April 24, 2006 Page 2 SECTION FIVE. EFFECTIVE DATE. That this Ordinance shall be in full force and effect five (5) days after publication of the Ordinance Summary. INTRODUCED: MAY I 1 2006 PASSED: MAY I 1 2006 APP~ 200~ ::>,' ~ PETER B. LEWIS, MAYOR ATTEST: A0aJ;);~ Danielle E. Daskam, City Clerk PUBLISHED: 657 4:vCJ (p Ordinance No. 6020 April 24, 2006 Page 3