HomeMy WebLinkAboutMerrill Gardens at Auburn, LLC CITY OF Y
AWASHINGTON
MULTI-FAMILY HOUSING TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this.A day of fezeutgAi , 20 by and between
uU- &* -A5* M Au -4d,14-C (hereinafter referred to as the"Owner"),and the CITY OF AUBURN,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 3.94 Auburn Municipal Code(ACC),enacted a program whereby property
owners may qualify for a Final Certificate of Tax Exemption which certifies to the King 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 fifty (50) units of
new/rehabilitated multifamily housing within a residential structure or as part of an urban development.
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: SEE EXHIBIT A
, in the City of Auburn, King County.
Assessor's Parcel Number(s) ,commonly known as
, hereinafter referred to as the"Site,"
and
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 Auburn Municipal
Code(herein referred to as the"ACC")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 fifty(50)units of multifamily housing within a
residential structure or as part of an urban development.
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 X 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-income
households as defined by Section 3.94.030 ACC).
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:
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 King
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 Auburn Municipal Code
(ACC)3.94.110 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 King County Assessor and the City's Department of
Community Development within 60 days of such change in use.
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. 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.
17. Nothing in this Agreement shall permit or be interpreted to permit either party to violate any provision of
Chapter 84.14 RCW or ACC Chapter 3.94.
18. No modifications of this Agreement shall be made unless mutually agreed upon by the parties in writing.
19. 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 King 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 King County at any time during the exemption
period.
20. 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.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.
City of Auburn Property Owner
• _ Byt
Nancy Backus, y.•
Its.
/Il 11/)�l'./6r. Merrill Gardens at Auburn, LLC
Kevin ny.4F,ectorrit ommunity By: RDM Housing Strategies IV, LP, a
Development&P lic ork
•
Delaware limited partnership
Shelley Coleman, Fijnce Director Its: Managing Member
Appr•- ed .-;to , ' By: R.D. Merrill Real Estate Holdings, LLC, a
�.\ Washington limited liability company
treid,City Attorney Its: General •.rtner
Name: �/.l6a.., ' 72-17924
Its: ,S0:
EXHIBIT A
Merrill Gardens Auburn—Tax parcel numbers
781570 0280
781570 0290
781570 0295
781570 0300
781570 0305
781570 0310
781570 0327
781570 0325
781570 0326
781570 0285
Addresses:
ATTACHMENT TO CLOSING STATEMENT#13000200633A
Property Address
9 Second Street SE Auburn, Washington 98002
Property Address
15 Second Street SE Auburn,Washington 98002
Property Address
123 A Street SE Auburn,Washington 98002
Property Address
117 A Street SE Auburn, Washington 98002
Property Address
115 A Street SE Auburn, Washington 98002
Property Address
55 A Street SE Auburn, Washington 98002
Property Address
109 A Street SE Auburn, Washington 98002
A new address of 18 15' Street Auburn, WA 98001 was assigned to the entire site recently, but the above
addresses were the addresses that were in effect at the time we purchased the land. Please note that not all
the parcels had an address.
EXHIBIT A
LEGAL DESCRIPTION
LOTS 1 THROUGH 8, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT
THEREOF RECORDED IN VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY,
WASHINGTON AND ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING
COUNTY, WASHINGTON;
EXCEPT THAT PORTION OF SAID LOT 8 CONVEYED TO THE CITY OF AUBURN BY
DEEDS RECORDED UNDER RECORDING NUMBERS 7701270580 THROUGH 7701270583,
INCLUSIVE, RECORDS OF KING COUNTY WASHINGTON;
AND EXCEPT THAT PORTION OF SAID LOT 5 CONVEYED TO THE CITY OF AUBURN FOR
RIGHT OF WAY UNDER RECORDING NUMBER 20070619000373, RECORDS OF KING
COUNTY WASHINGTON;
AND EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED
RECORDED UNDER RECORDING NO's. 20150807001087, 20150807001088,
20150807001089, 20150807001090, 20150807001091, 20150807001092 AND
20150807001093.
SITUATE IN THE CITY OF AUBURN, KING COUNTY, WASHINGTON.
(LEGAL DESCRIPTION PER CITY OF AUBURN BOUNDARY LINE ADJUSTMENT BLA15-
0007, DECLARATION OF LOT COMBINATION RECORDED NOVEMBER 25, 2015 UNDER
RECORDING NUMBER 20151125001018, RECORDS OF KING COUNTY, WASHINGTON.)
20151125001018 001
H11111111111111111
WHEN RECORDED RETURN TO: 20151125001018
FIDELITY NATIO DISC 78.00
Owen B. Hille,P.L.S., Surveyor Project S PAGE-001 OF 006
J y 11/28/2015 14:40
Bargbausen Consulting Engineers, Inc. KING COUNTY, ILA
18215 72nd Avenue South
Kent,WA 98032
DOCUMENT TITLE(S)
Declaration of Lot Combination
REFERENCE NUMBER(S)OF DOCUMENTS ASSIGNED OR RELEASED:
N/A
GRANTOR(S):
111W Holdings Auburn SE Block LLC,a Washington limited liability company
GRANTEE(S):
MW Holdings Auburn SE Block LLC,a Washington limited liability company
ABBREVIATED LEGAL DESCRIPTION:
Lots 1-8,BLK 6,Town of Slaughter,Vol 2, PG 56
TAX PARCEL NUMBER(S):
781570 0280,781570 0290, 781570 0295,781570 0300,781570 0305,781570 0310,
781570 0327,781570 0325& 781570 0326
Recorded at the request of
FIDELITY NATIONAL TITLE
MAJOR ACCOUNTS
Order n Zo371Z97
Z7/ 1.2C, LPB OI-05
20151125001018 004
(CITY OF AUBURN BLA15-0007)
DECLARATION OF LOT COMBINATION
ORIGINAL LEGAL DESCRIPTIONS
PARCEL A:
PARCEL B, CITY OF AUBURN LOT LINE ADJUSTMENT NO. LLA-0003-95, RECORDED UNDER
RECORDING NUMBER 9502160960, RECORDS OF KING COUNTY, WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED RECORDED
UNDER RECORDING NO, 20150807001091.
PARCEL B:
LOT 3, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY,WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
PARCEL C:
LOT 4, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY, WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED RECORDED
UNDER RECORDING NO. 20150807001093.
PARCEL D:
LOT 5, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY,WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
EXCEPT THAT PORTION OF SAID LOT 5 CONVEYED TO THE CITY OF AUBURN FOR RIGHT OF
WAY UNDER RECORDING NUMBER 20070619000373, RECORDS OF KING COUNTY,
WASHINGTON.
Project 16840 Merrill Gardens BLE
16840exh04-LLE.dwg
16840L.012.doc
OBH
November 13, 2015
20151125001018.005
ALSO EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED
RECORDED UNDER RECORDING NO. 20150807001090.
PARCEL E:
•
LOT 6, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY, WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED RECORDED
UNDER RECORDING NO. 20150807001087.
PARCEL F:
LOT 7, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY, WASHINGTON;
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
PARCEL G:
THE SOUTH 60 FEET OF LOT 8, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT
THEREOF RECORDED IN VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY,
WASHINGTON;
EXCEPT THAT PORTION OF SAID LOT 8 CONVEYED TO THE CITY OF AUBURN BY DEEDS
RECORDED UNDER RECORDING NUMBERS 7701270580 THROUGH 7701270583, INCLUSIVE,
RECORDS OF KING COUNTY,WASHINGTON.
ALSO EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED
RECORDED UNDER RECORDING NO. 20150807001088.
PARCEL H:
THE NORTH 29.80 FEET OF LOT 8, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT
THEREOF RECORDED IN VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY,
WASHINGTON.
TOGETHER WITH THAT PORTION OF ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511
RECORDED UNDER RECORDING NUMBER 20140811000527, RECORDS OF KING COUNTY,
WASHINGTON WHICH ATTACHED THERETO BY OPERATION OF LAW.
EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED RECORDED
UNDER RECORDING NO. 20150807001092.
Project: 16840 Merrill Gardens BLE
16840exh04-LLE.dwg
16840L.012.doc
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November 13, 2015
20151125001018.006
PARCEL I:
THE SOUTH 30.2 FEET OF THE NORTH 60 FEET OF LOT 8, BLOCK 6, TOWN OF SLAUGHTER,
ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, PAGE 56, RECORDS
OF KING COUNTY,WASHINGTON.
EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED RECORDED
UNDER RECORDING NO. 20150807001089.
PARCEL J:
PARCEL A, CITY OF AUBURN LOT LINE ADJUSTMENT NO. LLA-0003-95, RECORDED UNDER
RECORDING NUMBER 9502160960, RECORDS OF KING COUNTY, WASHINGTON.
SITUATE IN THE CITY OF AUBURN, COUNTY OF KING, STATE OF WASHINGTON.
NEW LEGAL DESCRIPTION: Xth PO r i A
_ LOTS 1 THROUGH 8, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF
RECORDED IN VOLUME 2 OF PLATS, PAGE 56, RECORDS OF KING COUNTY, WASHINGTON AND
ALLEY VACATED BY CITY OF AUBURN ORDINANCE 6511 RECORDED UNDER RECORDING
NUMBER 20140811000527, RECORDS OF KING COUNTY,WASHINGTON;
—EXCEPT THAT PORTION OF SAID LOT 8 CONVEYED TO THE CITY OF AUBURN BY DEEDS
RECORDED UNDER RECORDING NUMBERS 7701270580 THROUGH 7701270583, INCLUSIVE,
RECORDS OF KING COUNTY, WASHINGTON;
--AND EXCEPT THAT PORTION OF SAID LOT 5 CONVEYED TO THE CITY OF AUBURN FOR RIGHT
OF WAY UNDER RECORDING NUMBER 20070619000373, RECORDS OF KING COUNTY,
WASHINGTON;
—AND EXCEPT THAT PORTION THEREOF CONVEYED TO THE CITY OF AUBURN BY DEED
RECORDED UNDER RECORDING NO's. 20150807001087, 20150807001088, 20150807001089,
20150807001090, 20150807001091, 20150807001092 AND 20150807001093.
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November 13, 2015
20151125001018.002
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SCALE: For: JOB NUMBER
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20151125001018.003
CURVE TABLE:
C1: d=51'13'57'
UNE TABLE: R=19.50'
L1=N53'38'56"E 12.60' L=17.44' ,,,
L2=S57 32'07"E 17.05'
L3=S0'51'03"W 60.80' 02: 6=51'39'23" =
L4=S1'15'47'W 6.08' R=30.25'
L5=50'59'15"W 35.98' L=27.27' °
L6=50'59105"1V 57.52'
L7=N89'13'37'W 32.14' C3: A=51'37'16" 0
L8=S0'53'001V 9.40' R=30.25' ;;
L9=S0'51'48'W 4.83' L=27.25' N
L10=S89'08'12"E 13.67' N
L11=N0'51'48'E 4.83' C4: 6=51'36'41" o
L12=N89108112"W 38.20' R=19.50'
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