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HomeMy WebLinkAbout01/10/2017 06G Property Development Tax Exemption; YMC Repealing Chapter 11.63 and Adding New Chapter 11.63 10 I BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.G. For Meeting of: January 10, 2017 ITEM TITLE: Ordinance relating to land use and development; repealing Chapter 11.63 of the Yakima Municipal Code and replacing it with a new Chapter 11.63 entitled "Downtown Redevelopment Tax Incentive Program" SUBMITTED BY: Sean Hawkins, Economic Development Manager Bronson Faul, Senior Assistant City Attorney SUMMARY EXPLANATION: The ordinance replaces Yakima Municipal Code Chapter 11.63 Downtown Redevelopment Tax Incentive Program by repealing it and adopting by reference specific sections of Revised Code of Washington Chapter 84.14 currently enacted, and as may be amended or recodified from time to time. The ordinance authorizes a process whereby properties satisfying the requirements of the application and development guidelines become eligible for exemption from ad valorem property taxation on the value of the new housing construction, conversion and rehabilitation improvements as provided in 84.14 RCW. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass ordinance. BOARD/COMMITTEE RECOMMENDATION: At its December 22, 2016 meeting the Council Economic Development Committee recommended that this item be forwarded to the full council for consideration. ATTACHMENTS: Description Upload Date Type Ordinance YMC 11.63[Downtown IRedevellopment"Ibx 12/14./2016 Ordinance lIncenthp IProgram strikeout copy Ordinance YMC 11.63[Downtown IRedevellopment"Ibx 12/141.2016 Ordinance lIncentNe IProgram FUNAL ORDINANCE NO. 2017- AN ORDINANCE relating to land use and development; repealing Chapter 11.63 of the Yakima Municipal Code and replacing it with a new Chapter 11.63 entitled "Downtown Redevelopment Tax Incentive Program"; authorizing a process whereby properties satisfying the requirements of the application and development guidelines become eligible for exemption from ad valorem property taxation on the value of the new housing construction, conversion and rehabilitation improvements as provided in 84.14 RCW. BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Chapter 11.63 of the Yakima Municipal Code is hereby repealed: Chapter 11.63 Sections: 11.63.010 Purpose. 11.63.020 Short title. 11.63.030 Definitions. 11.63.0'10 Residential target area designation and standards. 11.63.050 Tax exemptions for multifamily housing in residential target areas. 11.63.010 Purpose. The purpose of this chapter is to provide for increased residential opportunities in the city of Yakima within urban centers where the Yakima city council determines thcrc the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient urban centers. It is intended that this chapter meet all required provisions and procedures set forth in Chapter 8'1.1,1 RCW to comport with state law. (Ord. 2006 37 § 1 (part), 2006). 11.63.020 Short title. redevelopment incentive." (Ord. 2006 37 § 1 (part), 2006). 11.63.030 Definitions A. "Multifamily housing" means building(s) having four or morc dwelling units designed for permanent residential occupancy resulting from new construction or rehabilitation or conversion of vacant, underutilized, or substandard buildings. B. "Owner" means the property owner of record. C. "Urban center" means a compact identifiable district where urban residents 1. Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, government agencies; and 2. Adequate public facilities including streets, sidewalks, lighting, transit, 3. A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both types of use. economic development or authorized designee. E. "Permanent residential occupancy" means multifamily housing that provides -- -- - - - - - - - - - -- -- period of at least one month, and hotels and motels that predominately offer rental accommodations on a daily or weekly basis. F. "Rehabilitation improvements" means modifications to existing structures in order to achieve a condition of substantial compliance with existing building codes; or modification to existing occupied structures which convert nonresidential space to residential space and/or increase the number of multifamily housing units. and convenient residential housing to meet the needs of the public. H. "Substantial compliance" means compliance with local building or housing code requirements typically required for rehabilitation as opposed to new construction. (Ord. 2006 37 § 1 (part), 2006). A. Criteria. Following a public hctiaring, thc city council may, in its solc 1. The target area is located within a designated urban center; 2. The target area lacks sufficient available, desirable, and convenient residential housing to meet thc needs of thc public who would likcly livc in thc will assist in achieving the following purposes: (a) Encourage increased residcntial opportunitics within the target area; the rehabilitation of existing vacant and underutilized buildings for multifamily housing; (c) Stimulate the historically sensitive reuse of vacant and underutilized upper floors of urban center commercial space for permanent residential living; (d) Encourage mixed use development or redevelopment of buildings in the identified areas of the urban center presently containing retail and commercial uses that would support downtown residential living on the ground floors and would provide permanent residential housing on the upper floors. In designating a residential target area, the city council may also consider other attract and maintain a significant incrcoasc in the number of permanent residents; target area will help to achieve the planning goals mandated by the Growth Management designation of a residential target area at any time pursuant to the same procedure as set forth in this chapter for original designation. E. target area within an urban center the city council shall adopt standards and guidelines, 1 !A. . •A • - - - . plan (hereinafter "project") shall be relative to the size of the proposed development and projects at issue in this chapter: minimum of twenty five thousand dollars per unit. 2. Relocation. The project shall not result in residential displacement and shall not be considered for approval unless all relocation obligations required by state and federal law are satisfied. plan to convert existing ground floor commercial space (occupied or vacant) to housing, unless approved by way of specific waiver from city council. The city council encourages the use of ground floor spaces for retail and commercial uses projects approved under this program. 4. Reuse and Conversion. The program encourages the conversion and rehabilitation of the upper stories of urban center buildings for residential use. subject to this chapter is the boundary of that portion of the urban center set forth below herein by this reference, which are on file in the city clerk's office. west to the alignment of the BNSF railroad tracks; then north to the alignment of West Avenue; then north to East A Street; then east along the alignment of West A Street to the alignment of the BNSF railroad tracks; then north to the alignment of East Martin Luther King Boulevard; then east to point of beginning. (Ord. 2006 37 § 1 (part), 2006). multifamily housing in mixed use urban centers are intended to: 1. Encourage incrctiascd rcsidcntial opportunitics within mixcd usc urban centers designated by the city council as residential target areas; underutilized buildings for multifamily housing in residential target areas to increase and improve housing opportunities; 3. Assist in directing futurc population growth to dcsignatcd mixcd usc urban centers, thereby reducing development pressure on single family use in designated mixed use centers. B. Duration of Exemption. The value of improvemcnts qualifying undcr this of the final certificate of tax exemption. At the conclusion of the ten year exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of Chapter 8'1.55 RCW. C. Limits on Exemption. The exemption does not apply to the value of land or to the value of improvements not qualifying under this chapter, nor does the exemption casc of rchabilitation of cxisting buildings, the exemption does not include the value of under this chapter. D. Project Eligibility. A proposed project must meet the following requirements for consideration for a property tax exemption: 1. Location. The project must be located within a residential target area, as dcsignatcd in YMC 11.63.0'10(C). 2. Tenant Displacement Policy. Existing dwelling units proposed for to submission of an application and must have one or more violations of the city's minimum housing code, or the project shall not displace existing residential tenants of structures that are proposed for redevelopment prior to a federal laws have been complied with. Applications for new construction cannot be submitted for vacant property upon which an occupied residential rental structure previously stood, unless a minimum of twelve months has elapsed from the time of most recent occupancy. 3. Size. The project must includc at I act fnr-rvur unit of multifamily minimum of four new units must be constructed or at least four additional multifamily units must be added to existing occupied multifamily housing. Existing multifamily housing that has been vacant for twclvc months or morc shall not bc required to provide additional units so long as the project provides at least four units of new, converted, or rehabilitation multifamily housing. �. Permanent Rcsidcntial Housing. Onc hundred perccnt of thc spacc designated for multifamily housing must be provided for permanent residential 5. Proposed Completion Date. New construction multifamily housing and rchabilitation improvcmcnts must bc schcdulcd to bc complctcd within thrcc years from the date of application approval. 6 C-Gmpl a withGuidelines and Standards. The project must bc application is approvcd. Rchabilitation and conversion improvements must comply with the city's minimum housing code. New construction must comply with the International Building Code (IBC). The project must also comply with any other standards and guidelines adopted by the city council for the residential target area in which the project will be developed. E. Application Procedure. A property owner who wishes to propose a project for a tax exemption under this chapter shall complete the following procedures: 1. An applicant dcsiring to makc use of this program shall filc with thc together with the required fees. The initial application fee to the city shall consist paid to the city. If the application shall result in a denial by the city, the city shall refund the balance to the applicant. 2. A complete application shall include: (a) A completed city of Yakima application form setting forth thc grounds for the exemption; (b) Preliminary floor and site plans of the proposed project; completeness of the information submitted. of property noncompliance with the city's minimum housing code. F. Application Review and Issuance of Conditional Certificate. The director may certify an application that is determined to comply with the requirements of this chapter approvc or deny thc application. Thc determination of approval or denial shall be made application/permit/review processes otherwise required by the Yakima Municipal Code. 1. Approval. If an application is approved, the applicant shall enter into regarding the terms and conditions of the projcct. Upon council approval of thc -- - - - --- -- - - - exemption. Thc conditional ccrtificatc cxpircs thrcc years from the date of approval unless an extension is granted as provided in this chapter. 2. Denial. If an application contract is dcnicd by thc city council, thc director shall state, in writing to the applicant, the reasons for denial and shall council within thirty days of receipt of notice. On reconsideration, the city council's decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the council's decision. The city council's decision on reconsideration will be final. G. Extension of Conditional Certificatc. Thc conditional ccrtificatc may be applicant must submit a written request stating the grounds for the extension, director determines that: 1. The anticipated failure to complete construction or rchab-i-l-i-tatiae within the required time period is due to circumstances beyond the control of the owner; and 3. All the conditions of the original contract between the applicant and the city will be satisfied upon completion of the project. H. Application for Final Certificate. Upon completion of the improvements agreed upon in the contract between the applicant and the city and upon issuance of a certificate of tax exemption. The applicant must file with the city's department of community and economic development the following: 1. A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the entire property; for the exemption• and , 3. A statement that the work was completed within thc rcquircd thrcc year period or any authorized extension. director shall determine which specific improvements satisfy thc rcquircmcnts of this chapter. I. Issuance of Final Certificate. If the director determincs that thc projcct has been completed in accordance with the contract between the applicant and the city and has been completed within the authorized time period, the city shall, within ten days, filc a final ccrtificatc of tax cxcmption with thc Yakima County aa-ca-or for thosc improvements determined to satisfy the requirements of this chapter. 1. Denial and Appeal. The director shall notify the applicant in writing that a final certificate will not be filed if the director determines that: (a) The improvements were not completed within the authorized time period; (b) The improvements were not completed in accordance with the contract between the applicant and the city; or (c) The owner's property is otherwise not qualified under this chapter. Within fourtoon days of rocoipt of tho diroctor's donial of a final cortificato, tha providcd in YMC 16.08.020. If thc applicant chooscs to appeal thc dccision of the hearing examiner, the applicant may request a closed record appeal to the Yakima city council, as set forth in YMC 16.08.030. The city council's final decision may be appealed in Yakima County superior court, in accord with YMC 16.08.010. J. Annual Complianco Roviow. Within thirty days aftor tho first anniversary of the date of filing the final certificate of tax exemption and each year thereafter, for a period of tcn years, thc property owner shall file a notarized declaration with thc director indicating the following: 1. A statement of occupancy and vacancy of the multifamily units during the previous years; 2. A certification that tho proporty continuos to bo in complianco with tha contract with thc city; and 3. A dcscription of any subscqucnt improvcmcnts or changcs to the property. submit the annual declaration may result in the tax exemption being canceled. K. Cancellation of Tax Exemption. If the director determines the owner is not complying with thc terms of thc contract, thc tax cxcmption will be canccicd. noncompliance has been determined. If the owner intends to convert the multifamily housing to another use, the owner must notify the director and the Yakima County ascoscor within sixty days of tho change in use. 1. Effect of Cancellation. If a tax exemption is canccicd due to a change in use or othcr noncompliancc, thc Yakima County assessor may imposc an additional tax on the property, together with interest and penalty, and a priority lien may be placed on the land, pursuant to state legislative provisions. 2. Notice and Appoal. Upon dotormining that a tax oxomption is to ba cancolod, tho diroctor shall notify tho proporty ownor by cortifiod mail. Tha property owner may appoal tho dotormination by filing a notico of appoal with tha city cicrk within thirty days, spccifying thc factual and Icgal basis for thc appeal. The hearing examiner will conduct a hearing at which all affected parties may be heard and all competent evidence received. The hearing examiner will affirm, modify, or repeal the decision to cancel the exemption based on the evidence received. An aggrievod party may appoal tho hoaring oxaminor's docision to tha Yakima County suporior court. (Ord. 2006 37 § 1 (part), 2006). Section 2. Chapter 11.63 of the Yakima Municipal Code, entitled "Downtown Redevelopment Tax Incentive Program", is hereby enacted as to read as follows: Chapter 11.63 DOWNTOWN REDEVELOPMENT TAX INCENTIVE PROGRAM Sections: 11.63.010 Purpose. 11.63.020 Short title. 11.63.025_ Duly authorized administrative official. 11.63.030 Statutes adopted. 11.63.040 Residential target area designation and standards. 11.63.042 Project eligibility. 11.63.045 Application—Procedures. 11.63.010 Purpose. The purpose of this chapter is to provide for increased residential opportunities in the city of Yakima within urban centers where the Yakima city council determines there is insufficient housing opportunities. It is further the purpose of this chapter to stimulate the construction of new multiple-unit housing and the rehabilitation of existing vacant and underutilized buildings for multiple-unit housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities within these urban centers. To achieve these purposes this chapter provides special valuations for eligible improvements associated with multiple-unit housing in residentially deficient urban centers. It is intended that this chapter meet all required provisions and procedures set forth in Chapter 84.14 ROW to comport with state law. 11.63.020 Short title. The following sections shall be known and may be cited as the "downtown redevelopment incentive." 11.62.025 Duly authorized administrative official. The duly authorized administrative official of the city will be the city's department of economic development or an authorized designee. 11.63.030 Statutes Adopted. The following Revised Code of Washington (RCW) sections, as currently enacted or as hereafter amended or recodified from time to time, are hereby adopted by reference and shall be given the same force and effect as if set forth herein in full: RCW 84.14.005 Findings. ROW 84.14.010 Definitions. RCW 84.14.020 Exemption—Duration—Valuation. ROW 84.14.030 Application—Requirements. RCW 84.14.060 Approval—Required Findings. ROW 84.14.070 Processing—Approval—Denial—Appeal. ROW 84.14.090 Filing requirements for owner upon completion— Determination by city or county—Notice of intention by city or county not to file—Extension of deadline—Appeal. RCW 84.14.100 Report—Filing. RCW 84.14.110 Cancellation of exemption—Notice by owner of change in use—Additional tax—Penalty—Interest—Lien—Notice of cancellation—Appeal—Correction of tax rolls. 11.63.040 Residential target area designation and standards. A. Criteria. Following a public hearing, the city council may, in its sole discretion, designate one or more residential target areas. Each designated target area must meet the following criteria, as determined by the city council: 1. The target area is located within a designated urban center 2. The target area lacks sufficient available, desirable, and convenient residential housing to meet the needs of the public who would likely live in the urban center if desirable, attractive, and livable places were available; and 3. The provision of additional housing opportunities in the target area will assist in achieving the following purposes: (a) Encourage increased residential opportunities within the target area; (b) Stimulate the construction of new multiple-unit housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing; (c) Stimulate the historically sensitive reuse of vacant and underutilized upper floors of urban center commercial _space for permanent residential living; (d) Encourage mixed-use development or redevelopment of buildings in the identified areas of the urban center presently containing retail and commercial uses that would support downtown residential living on the ground floors and would provide permanent residential housing on the upper floors. In designating a residential target area, the city council may also consider other factors, including, but not limited to: whether additional housing in the target area will attract and maintain a significant increase in the number of permanent residents; whether an increased residential population will help alleviate detrimental conditions and social liability in the target area; and whether an increased residential population in the target area will help to achieve the planning goals mandated by the Growth Management Act under RCW 36.70A.020. The city council may, by ordinance, amend or rescind the designation of a residential target area at any time pursuant to the same procedure as set forth in this chapter for original designation. B. Target Area Standards and Guidelines. For each designated residential target area within an urban center the city council shall adopt standards and guidelines, as required by ROW 84.14.040(5), for both new construction and rehabilitation, including any area-specific application procedures that may be required in addition to the standard application process described herein. The requirements for a particular development plan (hereinafter "project") shall be relative to the size of the proposed development and the tax benefit to be obtained. In addition to the specific guidelines set forth in YMC 11.63.050, the city council adopts the following guidelines applicable to the specific projects at issue in this chapter: 1. Minimum Investment. Each project must represent an investment of a minimum of twenty-five thousand dollars per unit. 2. Relocation. The project shall not result in residential displacement and shall not be considered for approval unless all relocation obligations required by state and federal law are satisfied. 3. Ground Floor Space. The program is not available for projects that plan to convert existing ground floor commercial space (occupied or vacant) to housing, unless approved by way of specific waiver from city council. The city council encourages the use of ground floor spaces for retail and commercial uses that are supportive of downtown residential living in urban center residential projects approved under this program. 4. Reuse and Conversion. The program encourages the conversion and rehabilitation of the upper stories of urban center buildings for residential use. C. Designated Target Areas. The boundary of the "residential target area" subject to this chapter is the boundary of that portion of the urban center set forth below and indicated on the map identified as Exhibit "A," attached hereto and incorporated herein by this reference, which are on file in the city clerk's office. Beginning at the intersection of East Martin Luther King Jr. Blvd and North 6th Street; then south to the intersection of South 6th Street and East Walnut Street; then west to the alignment of the BNSF railroad tracks; then north to the alignment of West Chestnut Street; then west along the alignment of West Chestnut Avenue to South 7th Avenue; then north to East A Street; then east along the alignment of West A Street to the alignment of the BNSF railroad tracks; then north to the alignment of East Martin Luther King Boulevard; then east to point of beginning. 11.63.042 Project eligibility. Project Eligibility. A proposed project must meet the following requirements for consideration for a property tax exemption: 1. Location. The project must be located within a residential target area, as designated in YMC 11.63.040(C). 2. Tenant Displacement Policy. Existing dwelling units proposed for rehabilitation must have been unoccupied for a minimum of twelve months prior to submission of an application and must have one or more violations of the city's minimum housing code, or the project shall not displace existing residential tenants of structures that are proposed for redevelopment prior to a demonstration that all relocation obligations set forth in and required by state and federal laws have been complied with. Applications for new construction cannot be submitted for vacant property upon which an occupied residential rental structure previously stood, unless a minimum of twelve months has elapsed from the time of most recent occupancy. 3. Size. The project must include at least four units of multiple-unit housing within a residential structure or as part of a mixed-use development. A minimum of four new units must be constructed or at least four additional multiple-units must be added to existing occupied multiple-unit housing. Existing multiple-unit housing that has been vacant for twelve months or more shall not be required to provide additional units so long as the project provides at least four units of new, converted, or rehabilitation multifamily housing. 4. Permanent Residential Housing. One hundred percent of the space designated for multiple-unit housing must be provided for permanent residential occupancy, as defined in YMC 11.63.030(E). 5. Proposed Completion Date. New construction multiple-unit housing and rehabilitation improvements must be scheduled to be completed within three years from the date of application approval. 6. Compliance with Guidelines and Standards. The project must be designed to comply with the city's comprehensive plans building, housing, and zoning codes, and any other applicable regulations in effect at the time the application is approved. Rehabilitation and conversion improvements must comply with the city's minimum housing code. New construction must comply with the International Building Code (IBC). The project must also comply with any other standards and guidelines adopted by the city council for the residential target area in which the project will be developed. 11.63.045 Application—Procedures. Application Procedure. A property owner who wishes to propose a project for a tax exemption under this chapter shall complete the following procedures: 1. An applicant desiring to make use of this program shall file with the city's planning and development services department the required application, together with the required fees. The initial application fee to the city shall consist of a base fee of zero dollars, plus zero dollars per multiple-unit, up to a maximum total fee to the city of zero dollars. An additional one-hundred-dollar fee to cover the Yakima County assessor's administrative costs shall also be paid to the city. If the application shall result in a denial by the city, the city shall retain that portion of the fee attributable to its own administrative costs and refund the balance to the applicant. 2. A complete application shall include: (a) A completed city of Yakima application form setting forth the grounds for the exemption; (b) Preliminary floor and site plans of the proposed project; (c) A statement acknowledging the potential tax liability when the project ceases to be eligible under this chapter; and (d) Verification by oath or affirmation of the accuracy and completeness of the information submitted. For rehabilitation projects, the applicant shall also submit an affidavit that existing dwelling units have been unoccupied for a period of twelve months prior to filing the application, or verifiable evidence that all state and federal laws regarding residential displacement have been complied with, and shall secure from the city written verification of property noncompliance with the city's minimum housing code. Section 3. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 10th day of January, 2017. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: Exhibit A lc..,-..,,„ItW4.i..i,"4" ,:. ‘.1,• -,.., i `, ,'-' • :. i'4,4.0.;-....,. . . i - -. ,,,,,",,,. 1 fil.:1;;?.}4• -• lkii,r ..: t1. , ''aka, •' !.4 t rk'f A4si ; ! Y� li !� %` , +.k),.1,4.:7- . 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BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Chapter 11.63 of the Yakima Municipal Code is hereby repealed. Section 2. Chapter 11.63 of the Yakima Municipal Code, entitled "Downtown Redevelopment Tax Incentive Program", is hereby enacted as to read as follows: Chapter 11.63 DOWNTOWN REDEVELOPMENT TAX INCENTIVE PROGRAM Sections: 11.63.010 Purpose. 11.63.020 Short title. 11.63.025 Duly authorized administrative official. 11.63.030 Statutes adopted. 11.63.040 Residential target area designation and standards. 11.63.042 Project eligibility. 11.63.045 Application—Procedures. 11.63.010 Purpose. The purpose of this chapter is to provide for increased residential opportunities in the city of Yakima within urban centers where the Yakima city council determines there is insufficient housing opportunities. It is further the purpose of this chapter to stimulate the construction of new multiple-unit housing and the rehabilitation of existing vacant and underutilized buildings for multiple-unit housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities within these urban centers. To achieve these purposes this chapter provides special valuations for eligible improvements associated with multiple-unit housing in residentially deficient urban centers. It is intended that this chapter meet all required provisions and procedures set forth in Chapter 84.14 RCW to comport with state law. 11.63.020 Short title. The following sections shall be known and may be cited as the "downtown redevelopment incentive." 11.62.025 Duly authorized administrative official. The duly authorized administrative official of the city will be the city's department economic development or an authorized designee. 11.63.030 Statutes Adopted. The following Revised Code of Washington (RCW) sections, as currently enacted or as hereafter amended or recodified from time to time, are hereby adopted by reference and shall be given the same force and effect as if set forth herein in full: RCW 84.14.005 Findings. RCW 84.14.010 Definitions. RCW 84.14.020 Exemption—Duration—Valuation. RCW 84.14.030 Application—Requirements. RCW 84.14.060 Approval—Required Findings. RCW 84.14.070 Processing—Approval—Denial—Appeal. RCW 84.14.090 Filing requirements for owner upon completion— Determination by city or county—Notice of intention by city or county not to file—Extension of deadline—Appeal. RCW 84.14.100 Report—Filing. RCW 84.14.110 Cancellation of exemption—Notice by owner of change in use—Additional tax—Penalty—Interest—Lien—Notice of cancellation—Appeal—Correction of tax rolls. 11.63.040 Residential target area designation and standards. A. Criteria. Following a public hearing, the city council may, in its sole discretion, designate one or more residential target areas. Each designated target area must meet the following criteria, as determined by the city council: 1. The target area is located within a designated urban center; 2. The target area lacks sufficient available, desirable, and convenient residential housing to meet the needs of the public who would likely live in the urban center if desirable, attractive, and livable places were available; and 3. The provision of additional housing opportunities in the target area will assist in achieving the following purposes: (a) Encourage increased residential opportunities within the target area; (b) Stimulate the construction of new multiple-unit housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing; (c) Stimulate the historically sensitive reuse of vacant and underutilized upper floors of urban center commercial space for permanent residential living; (d) Encourage mixed-use development or redevelopment of buildings in the identified areas of the urban center presently containing retail and commercial uses that would support downtown residential living on the ground floors and would provide permanent residential housing on the upper floors. In designating a residential target area, the city council may also consider other factors, including, but not limited to: whether additional housing in the target area will attract and maintain a significant increase in the number of permanent residents; whether an increased residential population will help alleviate detrimental conditions and social liability in the target area; and whether an increased residential population in the target area will help to achieve the planning goals mandated by the Growth Management Act under RCW 36.70A.020. The city council may, by ordinance, amend or rescind the designation of a residential target area at any time pursuant to the same procedure as set forth in this chapter for original designation. B. Target Area Standards and Guidelines. For each designated residential target area within an urban center the city council shall adopt standards and guidelines, as required by RCW 84.14.040(5), for both new construction and rehabilitation, including any area-specific application procedures that may be required in addition to the standard application process described herein. The requirements for a particular development plan (hereinafter "project") shall be relative to the size of the proposed development and the tax benefit to be obtained. In addition to the specific guidelines set forth in YMC 11.63.050, the city council adopts the following guidelines applicable to the specific projects at issue in this chapter: 1. Minimum Investment. Each project must represent an investment of a minimum of twenty-five thousand dollars per unit. 2. Relocation. The project shall not result in residential displacement and shall not be considered for approval unless all relocation obligations required by state and federal law are satisfied. 3. Ground Floor Space. The program is not available for projects that plan to convert existing ground floor commercial space (occupied or vacant) to housing, unless approved by way of specific waiver from city council. The city council encourages the use of ground floor spaces for retail and commercial uses that are supportive of downtown residential living in urban center residential projects approved under this program. 4. Reuse and Conversion. The program encourages the conversion and rehabilitation of the upper stories of urban center buildings for residential use. C. Designated Target Areas. The boundary of the "residential target area" subject to this chapter is the boundary of that portion of the urban center set forth below and indicated on the map identified as Exhibit "A," attached hereto and incorporated herein by this reference, which are on file in the city clerk's office. Beginning at the intersection of East Martin Luther King Jr. Blvd and North 6th Street; then south to the intersection of South 6th Street and East Walnut Street; then west to the alignment of the BNSF railroad tracks; then north to the alignment of West Chestnut Street; then west along the alignment of West Chestnut Avenue to South 7th Avenue; then north to East A Street; then east along the alignment of West A Street to the alignment of the BNSF railroad tracks; then north to the alignment of East Martin Luther King Boulevard; then east to point of beginning. 11.63.042 Project eligibility. Project Eligibility. A proposed project must meet the following requirements for consideration for a property tax exemption: 1. Location. The project must be located within a residential target area, as designated in YMC 11.63.040(C). 2. Tenant Displacement Policy. Existing dwelling units proposed for rehabilitation must have been unoccupied for a minimum of twelve months prior to submission of an application and must have one or more violations of the city's minimum housing code, or the project shall not displace existing residential tenants of structures that are proposed for redevelopment prior to a demonstration that all relocation obligations set forth in and required by state and federal laws have been complied with. Applications for new construction cannot be submitted for vacant property upon which an occupied residential rental structure previously stood, unless a minimum of twelve months has elapsed from the time of most recent occupancy. 3. Size. The project must include at least four units of multiple-unit housing within a residential structure or as part of a mixed-use development. A minimum of four new units must be constructed or at least four additional multiple-units must be added to existing occupied multiple-unit housing. Existing multiple-unit housing that has been vacant for twelve months or more shall not be required to provide additional units so long as the project provides at least four units of new, converted, or rehabilitation multifamily housing. 4. Permanent Residential Housing. One hundred percent of the space designated for multiple-unit housing must be provided for permanent residential occupancy, as defined in YMC 11.63.030(E). 5. Proposed Completion Date. New construction multiple-unit housing and rehabilitation improvements must be scheduled to be completed within three years from the date of application approval. 6. Compliance with Guidelines and Standards. The project must be designed to comply with the city's comprehensive plan, building, housing, and zoning codes, and any other applicable regulations in effect at the time the application is approved. Rehabilitation and conversion improvements must comply with the city's minimum housing code. New construction must comply with the International Building Code (IBC). The project must also comply with any other standards and guidelines adopted by the city council for the residential target area in which the project will be developed. 11.63.045 Application—Procedures. Application Procedure. A property owner who wishes to propose a project for a tax exemption under this chapter shall complete the following procedures: 1. An applicant desiring to make use of this program shall file with the city's planning and development services department the required application, together with the required fees. The initial application fee to the city shall consist of a base fee of zero dollars, plus zero dollars per multiple-unit, up to a maximum total fee to the city of zero dollars. An additional one-hundred-dollar fee to cover the Yakima County assessor's administrative costs shall also be paid to the city. If the application shall result in a denial by the city, the city shall retain that portion of the fee attributable to its own administrative costs and refund the balance to the applicant. 2. A complete application shall include: (a) A completed city of Yakima application form setting forth the grounds for the exemption; (b) Preliminary floor and site plans of the proposed project; (c) A statement acknowledging the potential tax liability when the project ceases to be eligible under this chapter; and (d) Verification by oath or affirmation of the accuracy and completeness of the information submitted. For rehabilitation projects, the applicant shall also submit an affidavit that existing dwelling units have been unoccupied for a period of twelve months prior to filing the application, or verifiable evidence that all state and federal laws regarding residential displacement have been complied with, and shall secure from the city written verification of property noncompliance with the city's minimum housing code. Section 3. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 10th day of January, 2017. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: Exhibit A lc..,-..,,„ItW4.i..i,"4" ,:. ‘.1,• -,.., i `, ,'-' • :. i'4,4.0.;-....,. . . i - -. ,,,,,",,,. 1 fil.:1;;?.}4• -• lkii,r ..: t1. , ''aka, •' !.4 t rk'f A4si ; ! Y� li !� %` , +.k),.1,4.:7- . 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