CITY OF MOUNTLAKE TERRACE ORDINANCE NO. 2645

Transcription

1 CITY OF MOUNTLAKE TERRACE ORDINANCE NO AN ORDINANCE OF MOUNTLAKE TERRACE, WASHINGTON, AMENDING ORDINANCE NO AND CHAPTER 3.95 MOUNTLAKE TERRACE MUNICPAL CODE PROVIDING FOR THE A THREE-YEAR CONTINUATION OF THE PROPERTY TAX ABATEMENT PROGRAM FOR QUALIFIED MULTIFAMILY RESIDENTIAL DEVELOPMENT IN RESIDENTIAL TARGET AREAS AND AMENDING ORDINANCE NO EXPIRATION PROVIDING FOR THE EXTENSION OF THE EXPIRATION DATE OF ORDINANCE NO AND AMENDING ORDINANCE NO EXPIRATION PROVIDING FOR THE CONTINUATION OF ORDINANCE NO WHEREAS, Chapter RCW authorizes cities that have populations of at least 15,000 and plan under the Growth Management Act to provide for exemptions from property taxation for new multifamily residential development in residential targeted areas; and WHEREAS, the City of Mountlake Terrace has a population of approximately 20,000 and is part of the growing central Puget Sound region and plans under the Growth Management Act; and WHEREAS, the City's Comprehensive Plan designates the Mountlake Terrace Town Center and in 2007, the City Council adopted the Mountlake Terrace Town Center Plan, which establishes the designated Town Center as a mixed-use urban center that provides for both multiple-unit housing and commercial development; and WHEREAS, in 2008, the City Council adopted Ordinance No. 2480, which encourages multi-family housing to be developed in the area north of 216 th Street SW at a greater height to increase opportunities for multifamily residential development, and adopted Ordinance No. 2476, which provides new opportunities for mixed commercial and multifamily development in the Community Business District area north of 216 th Street SW; and WHEREAS, in 2010, the City Council adopted Ordinance No. 2551, which establishes the Freeway/Tourist zoning district as a mixed use area for both commercial and multiple-unit housing development; and WHEREAS, both the designated Town Center area, the area north of 216 th Street SW and Freeway Tourist area meet the location criteria set out in RCW to qualify for the Property Tax Abatement Program for Residential Development ; and WHEREAS, the Planning Commission held a public meeting on July 14, 2014, and August 11, 2014 and recommended the City Council amend MTMC to allow the property tax abatement program to continue indefinitely beyond the current October 1, 2014 program termination date for an additional three-year period; and

2 WHEREAS, on September 1, 2011, the City Council adopted a Resolution of Intent to designate the Town Center, Freeway/Tourist area, and the area north of 216 th Street SW as residential targeted areas for purposes of a temporary property tax abatement program under Chapter RCW and following a duly advertised public hearing adopted Ordinance 2577 on September 19, 2011designating residential targeted areas and establish a temporary property tax abatement program under Chapter RCW that expires on October 1, 2014; and WHEREAS, following the adoption of the temporary tax abatement program by the City Council, the City processed two tax abatement applications for the Arbor Village and Vineyard Park multi-family residential developments within the Town Center that will result in over 200 units of new multi-family housing consistent with the purpose and requirements of RCW and MTMC 3.95; and WHEREAS, the City Council finds that the temporary tax abatement program has increased residential opportunities and attracted new development in the Town Center targeted area, thus making the area more vibrant and stimulating business, entertainment and cultural activities. Accordingly, development of additional multiple-unit housing within the areas identified in the Resolution of Intent are beneficial to achieve the planning goals mandated by the Growth Management Act under RCW 36.70A.020 and the City s adopted population and housing targets for 2035; and WHEREAS, the tax incentive provided by Chapter RCW and Chapter 3.95 MTMC if continued into the future for an additional three-year period will further stimulate the creation of new multiple-unit housing within the residential targeted areas and benefit and promote public health, safety and welfare by encouraging residential development and redevelopment within those areas of the City; and WHEREAS, the City Council finds that providing additional multiple-unit housing opportunities in the areas identified in the Resolution of Intent meets the requirements of RCW Chapter 3.95 MTMC; and WHEREAS, MTMC currently provides for the termination of the property tax abatement program on October 1, 2014; and WHEREAS, the City Council finds that continuing the property tax abatement program for an additional three-year period is in the best interest of the City and will serve as an added economic incentive to attract multi-family development to the targeted areas as provided in the Resolution of Intent; and WHEREAS, this Ordinance has been prepared to amend Chapter 3.95 MTMC by deleting section 130 of the Municipal Code that establishes aextending the termination date of October 1, to October 1, 2017,and by deleting such section serves to allow the property tax abatement program to continue until such time that the City Council acts to repeal or further amend Chapter 3.95 MTMC; and WHEREAS, on 2014, the City Council held a public hearing after proper legal

3 notice, and considered public comments and the entire record related to the proposal set forth in this Ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOUNTLAKE TERRACE DOES ORDAIN AS FOLLOWS: Section 1. Findings. The Recitals set forth above are hereby adopted and incorporated as Findings of Fact and/or Conclusion of Law of the City Council. The City Council bases its findings and conclusions on the entire record of testimony and exhibits, including all written and oral testimony before the Planning Commission and the City Council.. Section 2. Expiration and Amendment. Ordinance No Expiration, is amended to read as follows: Section 96. Expiration This Ordinance (No. 2577) shall expire October 2, 2029 unless it is extended by the City Council following a public hearing. continue in full force and effect from the date of its adoption until such time as it may be repealed by action of the City Council. Section 3. Amendment. Ordinance No and Mountlake Terrace Municipal Code Chapter 3.95, PROPERTY TAX ABATEMENT PROGRAM FOR QUALIFIED MULTIFAMILY RESIDENTIAL DEVELOPMENT Chapter Sections is hereby amended to read as follows: Chapter 3.95 PROPERTY TAX ABATEMENT PROGRAM FOR QUALIFIED MULTIFAMILY RESIDENTIAL DEVELOPMENT Sections Purpose and authorization Definitions Residential Targeted Areas Tax exemption Duration Valuation Project eligibility Application procedures Application review Conditional certificate Contract Final certificate Fees Annual reporting Cancellation of tax exemption Appeals Reserved. Section 43. Amendment. Ordinance No and Mountlake Terrace Municipal Code Section , Application procedures, is hereby amended to read as follows:

4 Application procedures. An owner seeking tax incentives under this chapter shall complete the following application procedures, provided that after January 1, 2012, any application must be submitted prior to the submittal of a building permit for construction of new units, conversions, or rehabilitation improvements under this chapter; and provided, that no new applications for property tax exemption shall be accepted by the City after October 1, 2017: A. The owner shall apply to the City on forms provided by the director. The application shall contain such information as deemed useful by the director, and in the case of new and rehabilitated multifamily housing, the owner shall provide information that includes, but not limited to: 1. Information setting forth the grounds supporting the requested exemption; and 2. A brief description of the project, including the number and composition of proposed new units, conversions, and rehabilitation improvements, a preliminary site plan, and a preliminary floor plan of units, provided that such plans may be later revised in a manner that does not, in the director s opinion, materially alter the nature of the project or the rationale substantiating the tax exemption application; and 3. A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter. B. The applicant shall verify the application by oath or affirmation. C. In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the City, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes. D. The application shall be accompanied by the application fee required under MTMC E. The applicant may revise an application prior to a contract being approved under this chapter. Section 54. Amendment. Ordinance No and Mountlake Terrace Municipal Code Section , Application review Conditional certificate Contract, is hereby amended to read as follows: Application review Conditional certificate Contract. A. The director may approve an application for a conditional certificate of acceptance of temporary property tax exemption if she/he finds that: 1. A minimum of twenty (20) new multifamily residential units are being constructed, converted or rehabilitated; 2. The proposed project is or will be, at the time of completion, in conformance with all approved plans and all applicable requirements of the City s Municipal Code and adopted standards; 3. The project site is planned and located to meet the project eligibility requirements contained in MTMC ; 4. If applicable, the proposed multi unit housing project meets the affordable housing requirements as described in RCW The owner has complied with applicable requirements of this chapter, including but not limited to application requirements contained in MTMC

5 6. The application was received on or before October 1, 2017, or, if applicable, by another date that has been established by ordinance of the City Council. B. The Director shall deny an application if any of the criteria in subsection A of this section is not met or if any part of the proposed project site is within a campus facilities master plan the Director shall state in writing the reasons for denial. Notice of the denial decision shall be sent to the owner s last known address within ten (10) days of the denial. The owner may appeal the decision of denial to the hearing examiner within thirty (30) days after receipt of the denial notice under the provisions of MTMC C. If the application is approved, the owner shall enter into a contract with the city in order to establish the property tax exemption. When the contract is executed, the director shall issue the owner a conditional certificate of acceptance of property tax exemption. D. The conditional certificate of acceptance must contain a statement by the director that the property has been found to meet each of the criteria in subsection A of this section and has complied with the relevant requirements of MTMC and The certificate shall expire in three (3) years unless the director extends the time period pursuant to subsection E of this section. E. The conditional certificate of acceptance may be extended by the director for a single period not to exceed twelve (12) months after an applicant has submitted a written request stating the grounds for the extension. The request shall be accompanied by the fee required under MTMC An extension may be granted if the director determines that: 1. The anticipated failure to complete construction with the required time period is due to circumstances beyond the control of the owner; 2. The owner has been acting and can be reasonably expected to continue acting in good faith and with due diligence; and 3. All the conditions of the contract between the applicant and the City will be satisfied upon completion of the project. F. The applicant may request an amendment to the executed contract by filing a request with the director. The contract amendment request shall contain such information as deemed necessary by the director and at a minimum shall include a description of the status of the project, proposed language for a contract amendment, and the reason(s) for amending the contract. The request shall be accompanied by the fee required under MTMC After consultation with the director, the city manager may at his/her sole discretion agree to execute a contract amendment, provided that the contract amendment is in accordance with Chapter RCW and this chapter. G. The City Council shall be provided periodic reports on the issuance of conditional certificates and any time extensions for such certificates and on the execution of contracts and any contract amendments. Section 65. Amendment. Ordinance No and Mountlake Terrace Municipal Code , Program termination, is hereby amended to read as follows: Reserved Program termination. A. No new applications for property tax exemption under this chapter shall be accepted after October 1, Complete applications that are submitted on or before October 1, 2017, shall be processed under this chapter.

6 B. After such date that new applications are no longer accepted for tax exemption, all other provisions of this chapter shall remain in effect. For any project that has an executed contract under this chapter, the owner shall be allowed to retain the property tax exemption for the full eight-year period; provided, that the owner meets the terms of the contract and this chapter. (Ord , 2011). Section 76. Conflict. In the event of a conflict between this Ordinance and any ordinance or regulation of the City, the provisions of this Ordinance shall control. Section 87. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any section, sentence, clause or phrase of this Ordinance. Section 98. Summary and Publication. This Ordinance or a summary thereof consisting of the title shall be published in the official newspaper of the City and shall take effect and be in full force five days after the date of publication. PASSED BY THE CITY COUNCIL OF THE CITY OF MOUNTLAKE TERRACE this day of, 2014 and signed in authentication of its passage this day of, MAYOR JERRY SMITH ATTEST: CITY CLERK APPROVED AS TO FORM: Gregory G. Schrag, City Attorney