HomeMy WebLinkAbout03/21/2017 06L Multi-Family Limited Property Tax Exemption Agreement with Mills Yakima Properties, LLCBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 61.
For Meeting of: March 21, 2017
ITEM TITLE: Resolution authorizing a multi -family housing limited property tax
exemption agreement with Mills Yakima Properties, LLC
SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575-6274
SUMMARY EXPLANATION:
The City received an application from Mills Yakima Properties, LLC for the City's multi -family
housing limited tax incentive. The project is to update the former Nordstrom Building on the
southwest corner of 4th Street and Yakima Avenue with eight market rate apartments on the
second and third floor of the building. The ground floor and portion of the second floor would be
reserved for retail and office use. The project would be called the Valentina Building.
The City Council approved an update to the City's ordinance in January 2017 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
exemption would be for eight years and the units will be market rate. Mills Yakima Properties,
LLC expects the units to be available to the public in early 2018.
ITEM BUDGETED:
STRATEGIC PRIORITY:
NA
Economic Development
APPROVED FORcllv�
SUBMITTAL: ~City Manager
STAFF RECOMMENDATION:
Adopt resolution
BOARD/COMMITTEE RECOMMENDATION:
The Council Economic Development Committee reviewed the request for tax exemption from
Mills Yakima Properties, LLC at its February 23, 2017 meeting. The Council members voted 3-0
to move the request for consideration to the full City Council.
ATTACHMENTS:
Description
D Resolution - Mills Yokirna Properties LLC
D Contract for Mills Yakirna Properties, LLC
D Valentina Project Floor Plans
D Valentina Exterior Image
Upload Date
Type
3/1312017
Cover Merno
3/13/2017
CD%r Memo
3/13/2017
Cover Merno
3/13/2017
Coxer Merno
RESOLUTION NO. R -2017-
A RESOLUTION authorizing multi -family limited property tax exemption agreement with Mills
Yakima Properties LLC.
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 316 East Yakima Avenue, Yakima, WA consisting
of sixteen residential units; and
WHEREAS, the units will be approximately 1125-1980 square feet each; including four two
bedroom units and four one bedroom units, all containing two bathrooms 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 Mills Yakima Properties 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 21st day of March, 2017.
ATTEST:
Sonya Claar-Tee, City Clerk
Kathy Coffey, Mayor
MULTI -FAMILY HOUSING LIMITED PROPERTY
TAX EXEMPTION AGREEMENT
THIS AGREEMENT is entered into this 21st day of March, 2017, by and
between (Mills Yakima Properties, 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").
WITNESSETH:
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. 2006-37, recently repealed and
replaced by 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 redevelopment of a mixed use building at 316 East Yakima
Avenue, Yakima, WA that will include ground floor retail and restaurant space and
office and housing on the second and third floors; and
WHEREAS, the units will be approximately 1125-1980 square feet each;
including four two bedroom units and 4 one bedroom units all containing two
bathrooms 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: 19131-92443 with a legal description of Yakima: LOTS 9 THRU 12 BLK 71
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;
ac)contract
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT
NOW, THEREFORE, the City and the Applicant do mutually agree as follows:
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:
ac)contract 2
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT
(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
In
Cliff Moore, City Manager
ac)contract 3
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT
(DEVELOPER)
By
Monty Mills, Mills Yakima Properties LLC
Approved:
Sean Hawkins, Director
Department of Economic Development
Attest:
Sonya Claar-Tee, City Clerk
STATE OF WASHINGTON
) ss.
County of Yakima
On this day of
2017, before the undersigned, a Notary
Public in and for the state of Washington, duly commissioned and sworn, personally
appeared , 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
Printed Name:
Residing at
My commission expires
ac)contract 4
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT
STATE OF WASHINGTON
) ss.
County of Yakima
On this day of
2017, before the undersigned, a Notary
Public in and for the state of Washington, duly commissioned and sworn, personally
appeared , 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.
NOTARY PUBLIC
Printed Name:
Residing at
My commission expires
ac)contract 5
MULTIFAMILY HOUSING LIMITED
PROPERTY TAX EXEMPTION AGREEMENT
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