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HomeMy WebLinkAboutR-2017-024 Multi-Family Housing Limited Tax Exemption Agreement with One Chestnut, LLCA RESOLUTION RESOLUTION NO. R-2017-024 authorizing the City Manager of the City of Yakima to execute an agreement between the City of Yakima and One Chestnut, LLC for a multi -family housing limited tax exemption WHEREAS, the City has an interest in stimulating new construction or rehabilitation of multi- family housing in designated 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 a Residential Target Area for the provision of a limited property tax exemption for new multi -family residential housing, and WHEREAS, the City has, through Ordinance No. 2017-001, enacted a program whereby property owners may qualify for a Final Certificate of Tax Exemption which certifies to the Yakima County Assessor that the owner is eligible to receive a limited property tax exemption, and WHEREAS, the Applicant is interested in receiving a limited property tax exemption for the construction of Housing Remodel and Upgrade at 107 S. 1st Street, Yakima, WA consisting of sixteen residential units, and WHEREAS, the units will be approximately 500-800 square feet each; including four two bedroom units and twelve one bedroom units, all containing one bathroom each, and providing housing for individuals and small families in the designated Residential Target Area; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute and administer the necessary Agreements for One Chestnut, LLC to utilize a multi -family housing limited tax exemption to develop multi -family residential housing in the City's designated residential target areas. ADOPTED BY THE CITY COUNCIL this 17th day of February, 2017. ATTEST: lk()U-a -toonA4 Sonya Claay Tee, City Clerk- >Fil� MULTI -FAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT THIS AGREEMENT is entered into this 17th day of February, 2017, by and between (One Chestnut, LLC), (hereinafter referred to as the "Applicant"), and the CITY OF YAKIMA, a municipal corporation and first-class charter city (hereinafter referred to as the "City"). WHEREAS, the City has an interest in stimulating new construction or rehabilitation of multi -family housing in designated 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 a Residential Target Area for the provision of a limited property tax exemption for new multi -family residential housing; and WHEREAS, the City has, through Ordinance No. 2017-001, enacted a program whereby property owners may qualify for a Final Certificate of Tax Exemption which certifies to the Yakima County Assessor that the owner is eligible to receive a limited property tax exemption; and WHEREAS, the Applicant is interested in receiving a limited property tax exemption for the construction of Housing Remodel and Upgrade at 107 S. 1St Street, Yakima, WA consisting of sixteen residential units; and WHEREAS, the units will be approximately 500-800 square feet each; including four two bedroom units and twelve one bedroom unit all containing one bathroom each, and providing housing for individuals and small families in the designated Residential Target Area; and WHEREAS, the Applicant has submitted to the City preliminary site plans and floor plans for multi -family residential housing to be constructed on said property, described more specifically as follows: Parcel: 191319-23515 with a legal description of Section 19 Township 13 Range 19 Quarter NW: TOWN OF NORTH YAKIMA, NOW YAKIMA (A-10): Block 32 Lot 27 THRU 32 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 Applicant do mutually agree as follows: Qc)contract MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT 1 1 The City agrees to issue the Applicant a Conditional Certificate of Acceptance of Tax Exemption. 2 The Applicant 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 City Council approval of this Agreement. In no event shall such construction provide fewer than four new multi -family permanent residential units. It shall provide one hundred percent (100%) of its total residential units as permanent housing. 3 The Applicant 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 authorized extension thereof granted by the City. 4. The Applicant 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 Community and Economic Development Department the following: (a) a certified statement of expenditures made with respect to each multi- family housing unit and the total expenditures made with respect to the entire property; and (b) a specifically detailed description of the completed work and a statement of qualification for the exemption; and (c) a certified statement that the work was completed within the required three-year period or any authorized extension thereof. 5. The City agrees, conditioned on the Applicant's successful completion of the improvements in accordance with the terms of this Agreement and on the Applicant's filing of the materials described in Paragraph 4, above, to file a Final Certificate of Tax Exemption with the Yakima County Assessor's Office. The value of new housing construction, conversion and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, for eight (8) successive years beginning January 1 of the year immediately following the calendar year of issuance of the Final Certificate of Tax Exemption. The exemption does not include the value of land or non- housing -related improvements. At the conclusion of the eight-year exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purpose of chapter 84.55 RCW. 6. The Applicant 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 the duration of the tax exemption period, to file a notarized declaration with the City's Department of Community and Economic Development indicating the following (jc)contract MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT 2 (a) a statement of occupancy and vacancy of the rehabilitated or newly constructed property during the previous twelve months ending with the anniversary date; and (b) a certification that the property has not changed use and continues to be in compliance with this Agreement; and (c) a description of any subsequent improvements or changes to the property after the issuance of the Final Certificate of Tax Exemption. 7. If the Applicant converts any of the new multi -family residential housing units constructed under this Agreement to another use, the Applicant shall provide written notification of any such change in use to the Yakima County Assessor and the City's Department of Economic Development within sixty (60) days of such change in use. 8. The Applicant agrees to notify the City promptly of any transfer of Applicant's ownership interest in the Site or in the improvements made to the Site under this Agreement. 9. The City reserves the right to cancel the Final Certificate of Tax Exemption should the Applicant, or the Applicant's successors and assigns, fail to comply with any of the terms and conditions of this Agreement or the requirements of RCW 84.14 applicable to the tax exemption provided by the terms of this Agreement. 10. No modifications of this Agreement shall be made unless mutually agreed upon by the parties hereto in writing. 11. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect any 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. 12. In the event a dispute arises over the terms and conditions of this Agreement, the laws of the state of Washington shall apply; venue for any action necessary to enforce the terms and conditions of this Agreement shall lie in a court of competent jurisdiction in Yakima County, Washington. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. CITY OF YAKIMA By 7.11 By e, City Manager CITY CONTRACT NO. .20/ 7- OZ3 RESOLUTION NO: ` :J/ 7- O� (jc)contract MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT 3 (DEVELO"ER) Jon Al. e, One Chestnut, LLC Approved: Seanins, Director Department of Economic Development Sonya Clahr Tee, City Clerk STATE OF WASHINGTON ) ) ss. County of Yakima On this,4ay ofMt:c , 2017, before the undersigned, a Notary Public in an ifor the state of Washin n, duly commissioned and sworn, personally appeared j'earl, �5ric�,�/Li� , to me known to be the authorized signor for (CITY), and the person who executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year first above written. Notary Public State of Washington JODI L STEPHENS MY COMMISSION EXPIRES August 11, 2018 [notary seal] (jc)contract MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT NC'1ARY PUBLI rinted Name: Residing at My commiss ,• n expiresC32y 4 STATE OF WASHINGTON ) ) ss. County of Yakima r ) On this 21 day of I-aOr✓ , 2017, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared .jan,oGU/kt , to me known to be the authorized signor for (DEVELOPER), and the person who executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said person, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year first above written. A A TAMMY A. REGIRABAL Notary Public State of Washington My Commission Expires July 9,2017 [notary seal] 4 (jc)contract MULTIFAMILY HOUSING LIMITED PROPERTY TAX EXEMPTION AGREEMENT NOTARY PUBLIC p� Printed Name: I �r'�m aje- 13 /1116``/ Residing at t ��hAg7 Wel- My commission expires ?-`?- l -7 5 STATE OF WASHINGON COUNTY OF YAKIMA The undersigned, AFFIDAVIT , being duly sworn upon oath, hereby deposes and says: 1. I am over the agedf 18 and am a resident of the State of Washington. I have personal knowledge of the acts herein, and if called as a witness, could testify competently thereto. 2. I suffer no legal disabilities and have personal knowledge of the facts set forth below. 3. The building located at 107 S. 1St Street, Yakima, Washington 98901 has been unoccupied for a period of twelve months prior to filing this application. SIGNED AND SWORN TO (or affirmed) before me this .21 day of `'C r✓c , 2017. .06t. .A A IA A s m A A A 4 A TAMMY A. REGIMBAL Notary Public State of Washington My Commission Expires July 9, 2017 AFFIDAVIT OF - 1 NOTARY PUBLIC in and for the State of Washington, residing at: 46A Gi/vt My commission expires: 7 - °I -I CITY OF YAKIMA LEGAL DEPARTMENT CIVIL DIVISION 200 South Third Street Yakima, WA 98901-2830 (509) 575-6030 Fax 575-6160 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 9. For Meeting of: February 21, 2017 ITEM TITLE: Resolution authorizing an agreement with One Chestnut, LLC for a multi -family housing limited tax exemption SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575-6274 SUMMARY EXPLANATION: The City received an application from One Chestnut, LLC for the City's multi -family housing limited tax incentive. The project is to update the former Dragon Inn building on the southeast corner of 1st Street and Chestnut Avenue with 16 market rate apartments on the second and third floor of the building. The group floor would be reserved for a new retail use. The City Council approved an update to the City's ordinance to reflect the current state statute that would allow us to offer either an eight year tax exemption for market rate housing projects in the City's urban center or a twelve year tax exemption for low income housing. This project would be for eight year and the units will be market rate. One Chestnut, LLC expects the units to be available to the public in early 2018. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: This project was reviewed at the January 10, 2017 Council Economic Development Committee. The Committee recommended moving this agreement forward to the full Yakima City Council. ATTACHMENTS: Description Upload Date • Resolution One Chestnut LLC Agreement 2'1412017 • Project Image - One Chestnut LLC 2/13/2017 d Agreement One Chestnut, LLC 214/2017 Type Co\er Memo Cover Memo Cover Memo lenity architecture 3150 Kettle Court SE, Salem, Oregon 97301 P 503 3991090 F 503 399 0565 w Ienityarthitecture.com PERSPECTIVES SCALE: NTS AREA = 7,000 SF FOOTPRINT DATE: 06-01-16 NOTE: THESE DRAWINGS ARE PRELIMINARY AND REPRESENT THE DESIGNERS BEST ESTIMATION OF THE DIMENSIONS AND LOCATIONS OF BUILDING COMPONENTS. NOT FOR CONSTRUCTION.