2016/05/25 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 3 PROJECT TITLE: 5/18/16 Briefing COUNCIL BILL# C61(605-D3 An Ordinance Amending the Proposed Action Originating Department Planning City's Multifamily Housing Consent Contact Person Allan Giffen Property Tax Exemption Action Phone Number (425)257-8725 Regulations, Section 1 of 5/18/16 First Reading FOR AGENDA OF May 18,2016 Ordinance No. 2408-99, 5/25/16 Second Reading May 25,2016 Section 8 of Ordinance No. 6/1/16 Third Reading June 1,2016 2347-98, as amended(EMC 6/1/16 Public Hearing 3.78.080). Initialed by: Department Head CAA Council President Location Preceding Action Attachments Department(s)Approval Ordinance,Letter Planning, Legal Amount Budgeted -0- Expenditure Required -0- Account Number(s): Budget Remaining -0- Additional Required -0- DETAILED SUMMARY STATEMENT: This is a request to adopt an Ordinance amending the City's Multifamily Housing Property Tax Exemption Regulations, Section 1 of Ordinance No. 2408-99 and Section 8 of Ordinance No. 2347-98. In 2015 the City Council established the North Broadway Urban Center,in part,to encourage the development of student housing near Everett Community College and Washington State University through the property tax exemption incentive under Everett Municipal Code Chapter 3.78. Koz Development has secured building permits and is currently constructing a building,to be leased by Everett Community College for student housing,within the North Broadway Urban Center. Koz mistakenly believed that the project would be exempt from property taxes under RCW 84.36.050, and did not apply to the City for the property tax exemption. EMC 3.78.080.A requires the application for tax exemption to be filed prior to submitting an application for the building permit. The City has received correspondence from Everett Community College requesting an amendment to EMC 3.78.080 to allow for consideration of the Koz Development property for the property tax exemption. Their letter states that the building lease will not be economically feasible for the college without the tax exemption. The ordinance would allow a project located in the Institutional Overlay Zone to file an application for tax exemption prior to issuance of a Certificate of Occupancy. The ordinance would become void on January 1, 2017. RECOMMENDATION(Exact action requested of Council): Adopt Ordinance Amending the City's Multifamily Housing Property Tax Exemption Regulations, Section 1 of Ordinance No. 2408-99, Section 8 of Ordinance No.2347-98, as amended(EMC 3.78.080). 57