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HomeMy WebLinkAboutLW17-061 - Original - LARC @Kent Station, LLC - Multifamily Senior Housing on Meeker - 01/10/2027 Records 1` a : ,� ern �eht, Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: LARC @ Kent Station, LLC and King County Vendor Number: n/a ]D Edwards Number Contract Number: IN11 Gip This is assigned by City Clerk's Office Project Name: LARC Pr000sed Multifamilv Senior Housing on Meeker. West of Kent Station Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ITContract ❑ Other: Contract Effective Date: January 10, 2017 Termination Date: n/a Contract Renewal Notice (Days): n/a Number of days required notice for termination or renewal or amendment Contract Manager: Tom Brubaker Department: Law Contract Amount: n/a. Approval Authority: ❑ Department Director [3 Mayor ❑ City Council Detail: (i.e. address, location, parcel number, tax id, etc.): As of: 08/27/14 RIAU King County Department of Natural Resources and Parks Wastewater Treatment Division Finance and Administration Section King Street Center,KSC-NR-0502 201 South Jackson Street Seattle,WA 98104-3855 January 18, 2017 TO: Mark Isaacson, Division Director, Wastewater Treatment Division(WTD), Department of Natural Resources and Parks (DNRP) VIA: Tim Aratani, Section Manager, Finance and Administration Section (F&A), WTD, DNRP FM: Eunice Verstegen, Project/Program Manager IV, ItevonuutAccounts Receivable, WTD,DNRP RE: A,rcennan to Grant Reduced Cal�a�ity t.Jjargq for I li �i}�ble I lousing The attached agreement allows Legacy Affordable Retirement Communities (LARC) at Kent Station, a senior housing structure,to receive a 50% discount for 48 of the 131 living traits. King County is authorized to be the "enforcement authority" for this agreement. King County Code 28.84.050.0.2 states: 2. The capacity charge shall be a fixed rate per residential customer or residential customer equivalent determined annually by the council. The number of residential customer equivalents (RCEs)for multifamily structures shall be determined using the following scale. Two to four units per structure 0.8 RCEs per unit Five or more units per structure 0.64 RCEs per unit Senior citizen, low income and special purpose housing 0.32 RCEs per unit a. Senior citizen housing shall be multifamily structures of two or more dwelling units within which each dwelling unit shall consist of a room or a suite of two or more rooms, of which not more than one is a bedroom,for which occupancy has been limited to two persons, at least one of whom is age fifty-five or older. Thus, 48 of the 131 living units qualify for the 50% discount, whereas the remaining 83 units do not qualify (i.e. two bedroom housing). .AGREEMENT TO PROVIDE SENIOR HOUSING This Agreement to Provide Senior Housing(this "Agreement")is entered as of the ter* day of _ sd. 2017, between LARC @ Kent Station, LLC, a Washington limited liability cotrtpam ("'Ownor),the City of Kent,a Washington municipal corporation("CWty'") and ' King County a political subdivision of the State of Washington,("County"), RECITAILS A. Owner is the fee owner of certain real property located in the City of Kent, King County, Washington, legally described on Exhibit A attached hereto and incorporated herein by this reference(the"Property"), 13, Owner wishes to build and operate a multifamly residential project (the "Project") located at 1001 1"Ave N,Kent WA 98032,to provide a residential environment for individuals aged fifty-five(55)years and older(the"Minimum Age"), C. The Project will consist of multifamily structures each of which contains two or more dwelling units (the "Dwelling Units""), eighty-thine, (83) of which Dwelling Units shall consist of a room, or a suite of two or more roorus, of which not more than one room is a bedroom and for which occupancy shall be limited to two(2)persons,at least one of whom shall be of the Minimrun Age, and the remaining forty-elght (48) of which Dwelling Units shall be occupied by at least one person having reached the Minimum Age. D. City has issued a land use permit to Owner (the "Permit") that specifies in its description that at least one resident in each of the Dwelling Units shall be,of the Minimum Age (the"Minimum Age Requirement"). E. State law and the King County Code, ("I(CC") requixe that each user of the County's metropolitan sewage facilities pay the County a capacity charge when that user establishes a now service to sewer facilities of a city that discharge Into the County's metropolitan sewage facilities. The capacity charge is a fixed rate set by the County council.It is a monthly charge for fifteen(15)years,billed quarterly, F. At all times relevant herein the capacity charge for multifamily customers was based on the number of fesidential customer equivalents(BCE's)using the following scale: Five or more units per structure 0,64 RCS's per wilt Senior citizen housing 0,32 BCE's per unit The capacity charge for connections in 2017 will be.$60.80 per RCE, G, Owner, City and County desire to confirm Owner's agreement to conforin to the Minimum Age Requirement and to establish and declare certain conditions and restrictions with respect thereto, R69027,1�362330�OOAB -1- ' AGREEMENT NOW, THEREFORE, in consideration of the benefits to be derived hereunder and the foregoing Recitals, which are hereby incorporated into the Agreement by this reference, Owner, City and County hereby agree as follows: 1. jytryrgalyrit(jot}. Subject to certain exceptions provided by federal Housing and Urban Development regulations and the exceptions outlined below, all Dwelling Units in the Project, when leased, rented or otherwise occupied, shall satisfy the Minimum Age Requirement. For purposes hereof,the Minimum Age Requirement shall be deemed satisfied so long as at least one of the residents in any Dwelling Unit shall have attained the Minimum Age on or before the first day of residency;provided, if Owner in good faith intends for the Project to be solely occupied by residents who have attained the Minimum Age on or before the first day of their residency, and Owner undertakes good faith efforts to prevent or remedy any noncompliance with this requirertrent,Owner shall not be in breach of this regl iirement, 2, jtlggpjj>5 , The Minimum Age Requirement shall not apply to any Dwelling Unit leased or routed to, or occupied by, it resident manager of the Project or owner or employee of resident management company managing the Project. 3. Not later than March 1 of each year, Owner shut I provide a written report to City and County centlfying Owifoes compliance witit the Minimum Age Requirement. City and County shall have the right to inspect Owner's leasing files, upon written notice of not less than thttee (3) business days, to confirm Owner's compliance with the requirements of this Agi'ccinent. Such Inspection shall take place at Owner's management office at the Project during normal business hours.City and County shall maintain the confidentiality of any tenant infort iatlon which Is subject to non-disclosure under applicable law. 4. HpfiqgffYjqJ4atli, In the event the use of the Project fails to comply with the requirements of this Agreement, Owner or its successor(s) in interest shall give the Director of Community Planning and Development of the City of Kent and the County at the addresses set forth in Section 6 below, irmuediate written notice of such non-compliance, which notice shall further state the actions Owner proposes to take to cure such noncompliance. In the event such uon-compliance, or any other violation of or non-compliance with this Agreement,the Permit or the City's Land Use Code is not cured within the time period for cure of any other violation of this Agreement or the Permit, the sanctions then in effect under the City's Laud Use Code for violation or non-compliance with a land use permit or other violation of the Land Use Code shall apply, and the City shall have the right to invoke and enforce any and all remedies available to the City under the Land Use Cade for a code violation, including, but not limited to such fines and/or other monetary sanctions as may then apply for violation of the Permit.In addition to and not in lieu off he remedies available pursuant to this Section 4 of this Agreement in the event of a violation of or non-compliance with the requirements of this Agreement, such that the Project or one or more of the units In the Project fail to comply with the requirements of.this Agreement and/or the provisions of KCC Section 28,84.050(0)(2)(a) then in addition to any fines,penalties and/or monetary sanctions owed pursuant to this Section 4,the Owner,its successors turd assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, as set forth in Section 5, 48902.7.1 1 362330 10049 -2- 5. 5en�taa' &lotrn gg t'{ylta¢c ty_Q)arjpyn, The Owner acknowledges and agrees that the County's capacity charge for 83 Dwelling Units on the Property will be discounted in consideration of the County's requirement that these 83 Dwelling Units meet the qualifications for the senior citizen housing discount set forth in KCC Section 28.84,050(0)(2)(a), If these KCC requirements are met, then for these 83 Dwelling Units on the Property, the County's capacity charge would be discounted and calculated as follows: 83 units multiplied by [lie Senior Citizen Housing rate of 0,32 RCE's per unit multiplied by the capacity charge rate in effect at the time of connection of the Property(the rate for 2017 is $60,80 per RCE per month). The Owner acknowledges and agrees that the remaining 48 Dwelling Units at the Property do not qualify under the KCC as Senior Citizen Housing for capacity charge purposes and will be charged at 0.64 RCE per unit. The Owner acknowledges and agrees that If tho.Orvner or its sueoessor(s) or assign(s) fails to comply with the requirements of this Agreement and/or the provisions of KCC Section 28.84.050(0)(2)(a) then in addition to any tines, penalties and/or monetary sanctions owed to the City, the Owner, its successors and assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, calculated as follows: 83 units multiplied by 0.64 RCS's per unit multiplied by the capacity charge rate in effect at the time of connection of the Property(in 2017 the rate is $60.80 per RCE per niorrth)plus any other sums assessed against the Owner and/or the Property for aion-payment, if any, minus the amount of any capacity charge payments already made by the Owner to file County as of the date of the violation of the 4lgrecment and/or the KCC, The Owner acknowledges and agrees that King County may enforce and collect these amounts against the Property as set forth in RCW 35,58.570 and RCW 57.08.081 and/or any successor state law provisions. 6. NgtIN. Notices, certificates, reports, or other oommunications shall be deemed delivered on the third day following the date on which the same have been mailed by certified or registered mail,postage pre-pall,return receipt requested,or oil the date on which the samo have been person6lly delivered with proof of receipt,at the addresses specifed below,or at such other addresses as may be specified iu writing by the parties listed below: If to City of Kent: City of Kent City Clerk 220 41"Avenue S. Scent,WA 98032 And to: City of Kent Economic&Community Development Director 400 W, Gowe Street Kent,WA 98032 489027.1 13623301 0048 -3- If to String County: King County Department of Natural Resources&Parks Wastewater Treatment Division 201 South Jackson Street Seattle,WA 98104-3855 Attn: Director If to Owner: LARC at Kent 110— 110`t`Ave NE#550 Bellevue WA 98004 7, )3�p 1aa i 1ptaK..tSgt air a1�1 1r . This Agreement shall benefit and be enforceable by the City and/or the County, This Agreement and the requirements hereof shall be binding upon all heirs,assigns and successors of Owner with respect to the Project, 8, laieaad,rnen This Agreement may not be modified in any respect whatsoever, or rescinded, in whole or in part, except by a writing executed by Owner (or its assignee or successor) the City and the Cuff% which writing riiti'st expressly state it amends this Agicement,identifying the portion of this Agreement so Amended. 9, &44,,Car ldnfgmVrawrt. In the event any lawsuit, arbitration, or legal proceeding is brought to enforce any of the terms hereof, the prevailing patty shall be entitled to recover its reasonable attorney's fees and costs from-the nou-i;arovailing party. 10, f10yond g ,g , The Agreement is made and entered into and shall be construed in accordance with ordinances of the City of Kent and the laws of the State of Washington, Venue for any action brought under this Agreement shall be in King Cour"Superior Court, 11, Authority: Representations and Watxanties. .Each signatory to this Agreement represents and warrants that he or she has full power and authority to execute and deliver this Agreement on behalf of the entity fox whom he or she is signing. 12, Entire,d_gt,, a o This Agreement, its Recitals and 'its Exhibit (whirb by this reference are incorporated into and made a part of this Agreement) states and constitutes the entire contract, agreement and understanding of the parties and fully supersedes and replaces any prior agreement, discussions,negotiations, and understandings,written or oral with respect to the subject matter hereof, 13, Q!L11 r a r° L11t,J, gnatures 1?y_&U&I uldii. This Agreement may be executed !it any number of counterparts, each of which shall constltute an original, and all of which will together constltute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person, 499027,a 1 U2330 10048 4- DATED as of the day and year first written above. LARC ICE'NT STATION,LLC, a Washington limited 110111ty company By: LARC r@ Rent Station Manager, LLC,a Delaware limited liability company Its: Managing Member By: The LARC(Troup,LLC,a Washington limited liability company Its: Maria By Itogor "IKuukana CITY OF KBNT,a Washiugton municipal corporation ale Narna�,u7=11p Cu ke Mnya�e KING COUNTY By:_ r ti Nara . _ Title: .,..,m,. .�JI .:�._z 489027.1 36233010048 -5- i E)MMIx A NEW LEGAL DESCRIPTION4 LOT 1 THAT PORTION OF THE NORTLI EAST QUARTER OF SECOON 13,TOWNSHIP 22 NORTH,RANGE 4 EAST, WILT mr.-TLEMERIDIAN,INKINGCOUNIY,WAStIINGTON,LYINGSOUTHEASTERLYOFTHE sO1JTHrASTERI:Y MARGIN 01'l 15RNMARYSTATE HIGH WAY NUMBER 5,AS CONDEM ME[)IN XING COUNTY SUPERIOR COURT CAUSE NUMBER 657499,AND WEST OFTHE BURLINGTON NORTHERN RAILROAD RIGHT OP WAY; 70GETHER WITH THAT PoRTIoN OF THE NORTH HALF OP THE NORTHWEST QUARTER of THE SOUTHEAST QUARTER OF SRC"ON 2B,TUWNSHBP'2Z NORTH,AANGR 4 EAVf,WILLAMETTE MERIDIAN;. IN KING COUNTY,WASHINGTON,LYING EAST OF NORTH 4TH AVENUE,AS CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 768685,AND SOUTHEASTERLY OF THE SOUTHEASTERLY MARGIN OF PRIMARYSTATE HIGHWAY NUMBERS,AS CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE",NUMBER 657499? EXCEPTTHATPORTIONOPTHESOUTHSOFEYT fHERIiOFASCONVEYEDTOKINGCOUNTYFORROADBY bEEDS'RRCORDED UNDER RECORDING NUMBERS 2736891 AND 27b6866q . AND EXCEPTTHAT PORTION OFTHE$ UTH221° ETTHEREOP,ASCONVEYEDBYKINGCOUNTY RECORDING NUMBE�fg TOGETHER WITH THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF THE SOUTIWAST QUARTEHOF SECTION 19,TOWNSHIP 22 NORTH,RANGE EAST,WILLAMEd1R MERIDIAN, IN KING COUNTY,WASHINGTON,LYING WEST OFTIIE BURLINGTON NORTHERN RAILROAD Itd[R IY or WAY) EI4�CEI 'T;IESOU:II21PEIsT #EREOF,AS CONVEYED BY KING COUNTY RECORDING NUMBER G4yWT;FM 4LRDB J�+'M 6.22f203'.6 489027,11 362330 10048 .6_ AGREEMENT TO PROVIDE SENIOR HOUSING This Agreement to Provide Senior housing(this "Agreement")is entered as of the le7W_ flay of Nrrks /�, 2017, between LARC @ Kcnt Station, LLC a Washington limited liability eompait ('Orvrrcr),the City of Kent,, a Washington municipal corporation("City") and ' King County a political subdivision of the State of Washington,("County'), RECITALS A. Owner is the fee owner of certain real property located in the City of Kent, King County, Washington,legally described on Exhibit A attached hereto and incorporated herein by this reference(the"Property"). B, Owner wishes to build and operate a multifamly residential project (the "Project") located at 1001 I't Ave N, Kent WA 98032,to provide a residential environment for individuals aged fifty-five(55)years and older(the"Minimum Age"). C. The Project will consist of multifamily structures each of which contains two or more dwelling units (the "Dwelling Units"), eighty-three (83) of which Dwelling Units shall consist of a room, or a suite of two or more rooms, of which not more than one room is a bedroom and for which occupancy shall be limited to two(2)persons, at least one of whom shall be of the Minimum Age, and the remaining forty-eight (48) of wbich Dwelling Units shall be occupied by at least one person having reached the Minimum Age, D. City has issued a land use permit to Owner (the "Permit") that specifies in its description that at least one resident in each of the Dwelling Units sliall be of the Minimum Age (the"Minimum Age Requirement"). E. State law and the King. County Code- (WCC") require that each user of the County's metropolitan sewage facilities pay the County a capacity charge when that user establishes a new service to sewer facilities of a city that discharge into the County's metropolitan sewage facilities. The capacity charge is a fixed rate set by the County council.It is a monthly charge for fifteen(15)years,billed quarterly, F. At all threes relevant herein the capacity charge for multifamily customers was based on the number of residential customer equivalents(BCE's)using the following scale: Five or more units per structure M4 RCS's per unit Senior citizen housing 0.32 RCE's per unit The capacity charge for connections in 2017 will be$60.90 per RCE. G. Owner, City and County desire to confirm Owner's agreement to conform to the Mini nutn Age Requirement and to establish and declare certain conditions and restrictions with respect thereto. 489027.1 1 362330 10043 -1- ' AGREEMENT NOW, THEREFORE, in consideration of the benefits to be derived hereunder and the foregoing Recitals, which are hereby incorporated into the Agreement by this reference, Owner, City and County hereby agree as follows: 1. I osildetign• Subject to certain exceptions provided by federal Housing and Urban Development regulations and the exceptions outlined below, all Dwelling Units in the Project, when leased, rented or otherwise occupied, shall satisfy the Minimum Age Requirement. For purposes hereof,the Minimum Age Requirement shall be deemed satisfied so long as at least one of the residents in any Dwelling Unit shall have attained the Minimum Ago on or before the first day of residency;x)rovlded, if Owner in good faith intends for the Project to be solely occupied by residents who have attained the MinimWn Age on or before the first day of their residency, and Owner undertakes good faith efforts to prevent or remedy any noncompliance with this requirement, Owner shall not be in breach of this requirement. 2. ljt_qpjLfions,The Minimum Age Requirement shall not apply to (toy Dwelling Unit leased or rented to, or occupied by, a resident manager of the Project or owner or employee of resident management company managing the Project. 3. Reporting and Bn£'orewn.ent. Not later than March 1 of each year, Owner shall provide a written report to City and County certifying Owner's compliance with the Minimum Age Requirement, City and County shall have the right to inspect Owner's leasing files, upon written notice of not less than three (3) business days, to confirm Owner's compliance with the requirements of this Agreeinertt. Such inspection shall take place at Owner's management office at the Project during normal business hours. City and County shall maintain the confidentiality of any tenant information which is subject to non-disclosure under applicable Iaw. 4. Notice of Violation. In the event the use of the Project fails to comply with the requirements of this Agreement, Owner or its successor(s) in interest shall give the Director of Community Planning and Development of the City of Kent and the County at the addresses set forth in Section 6 below, inunediate written notice of such non-compliance, which notice shall further state the actions Owner proposes to take to cure such non-compliance. In the event such non-compliance,or any other violation of or non-compliance with this Agreement,the Permit or the City's Land Use Code is not cured within the time period for cure of any other violation of this Agreement or the Permit, the sanctions then in effect under the City's Land Use Code for violation or non-compliance with a land use permit or other violation of the Land Use Code shall apply, and the City shall have the right to invoke and enforce any and all remedies available to the City under the Land Use Code for a code violation, including, but not limited to such fines and/or other monetary sanctions as may then apply for violation of the Permit. In addition to and not in lieu of the remedies available pursuant to this Section 4 of this Agreement in the event of a violation of or non-compliance with the requirements of this Agreement, such that the Project or one or more of the units in the Project fail to comply with the requirements of.this Agreement and/or the provlsion� of KCC Section 28.84.050(0)(2)(a) then in addition to any fines,penalties and/or monetary sanctions owed pursuant to this Section 4,the Owner,its successors and assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, as set forth in Section 5. 439027.11 HMO 10048 ^2- 5. Seaaior Ilolps atg„,C:tlpgtgRy Chargq� The Owner acknowledges and agrees that the County's capacity charge for 83 Dwelling Units on the Property will be discounted in consideration of the County's requirement thattheso 83 Dwelling Units meet the qualifications for the senior citizen housing discount set forth in KCC Section 28,84.050(0)(2)(a). If these KCC requirements are met, then for these 83 Dwelling Units on the Property, the County's capacity ebarge would be discounted and calculated as follows: 83 units multiplied by the Senior Citizen Housing rate of 0.32 BCE's per unit multiplied by the capacity charge rate in effect at the tune of connection of the Property(the rate for 2017 is $60,80 per RCE per month). The Owner acknowledges and agrees that the remaining 48 Dwelling Units at the Property do not qualify under the KCC as Senior Citizen Housing for capacity charge purposes and will be charged at 0,64 RCE per unit. The Owner acknowledges and agrees that if the_Owner or its sueocssor(s) or assign(s) fails to comply with the requirements of this Agreement and/or the provisions of KCC Section 28,84.050(0)(2)(a) then in addition to any panes, penalties and/or monetary sanctions owed to the City, the Owner, its successors and assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, calculated as follows: 83 units multiplied by 0,64 BCE's per unit multiplied by the capacity charge rate in effect at the time of connection of the Property(in 2017 the rate is$60.80 per RCE per month)plus any other sums assessed against the Owner and/or the Property for non-payment, if any, mhos the amount of any capacity charge payments already made by the Owner to the County as of the date of the violation of the Agreement and/or the KCC. The Owner acknowledges and agrees that King County may enforce and collect these amounts against the Property as set forth is RCW 35.58.570 and RCW 57.08,081 and/or any successor state law provisions. 6. Notice. Notices, certificates, reports, or other coamuumications shall be deemed delivered on the third day following the date on which the same have been mailed by certified or registered snail,postage pre-paid,return receipt requested,by on the date on.which the same have been personally delivered with proof of receipt, at the addrmos specified below, or at such other addresses as may be.specified in writing by the parties listed below: If to City of Kent: City of Kent City Clerk 220 4"'Avenue S. Kent,WA 98032 And to: City of Kent Economic& Community Development Director 400 W. Gowe Street Kent,WA 98032 489027.t 1 368301 0048 -3- If to King County: King County Department of Natural Resources&Parks Wastewater Treatment Division 201 South Jackson Street Seattle, WA 98104-3855 Attn: Director If to Owner: LARC at Kent I10— 110"'Ave NE#550 Bellevue WA 98004 7, Assigns. This Agreement shall benefit and be enforceable by the City and/or the County. This Agreement and the requirements hereof shall be binding upon all heirs,assigns and successors of Owner with respect to the Project. S. Amendment. This Agreement may not be modified in any respect whatsoever, or rescinded, in whole or in part, except by a writing executed by Owner (or its assignee or successor) the City and the County, which writing must expressly state it amends this Agreement,identifying the portion of this Agreement so innended. 9, FL90%fot Enforcement, In the event any lawsuit, arbitration, or legal proceeding is brought to enforce any of the terms hereof, the prevailing patty shall be entitled to recover its reasonable attorney's fees and costs from the non-prevailing party. 10. Governing f atilt. The Agreement is made and entered into and shalt be construed in accordance with ordinances of the City of Kent and the laws of the State of Washington. Venue for any action brought under this Agreement shall be in King County Superior Court. 11, Authority: Representations and Warranties. Each signatory to this Agreement represents and warrants that he or she has full power and arithorlty to execute and deliver this Agreement on behalf of the entity for whom he or she is signing. 12. Entite,&reed This Agreement, its Recitals and'its Exhibit (wbich by this reference are incorporated into and made a part of this Agreement) states and constitutes the entire contract, agreement and understanding of the parties and fully supersedes and replaces any prior agreement, discussions,negotiations, and understandings,written or oral with respect to the subj act matter hereof. 13, Countorparts and Sj untures, by Fax or Email, This Agreement may be executed in any number of counterparts, each of which shalt constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to ilia other by fax or email and that signature shall have the saute force and effect as if the Agreement bearing the original signature was received in person, 489027.1 t 382330 10048 4- DATED as of the day and year first written above. LARC @ Ial NT STATION,LLC, a Washington limited liability company By: LARC @ Kent Station Manager, LLC,a Delaware limited liability company Its: Managing Member By: The LARC Group,LLC,a Washington limited liability company Its: Manage By: Boger .ICu1at ,Manager CITY OF K1;NT,a Washington municipal corporation Narne• t5n`zuC Go ]ce Title: 'M DING COIINTY By: Name: Title: 489027.1 1 362330 10048 -5- E3aHBI7T A NEW LEGAL DCSCRI PT€DNi LOT THAT PORTION OF THC P40RTH EAST QUARTER OF SECTION 19,TOWN SI 01122 NORTH,RANG 4 CAST, WILLAMETTE MERIDIAN,IN KING COUNTY,WASIIINGTON,LYI NG S OU TH EASTERLY OF THE SOUTHEASTERLY MARGIN OF PRIMARY STATE HIGHWAY NUMBER 5,AS CON DEM N LD INKING COUNTY SUPERIOR COURT CAUSE NUMBER 657499,AND WEST OF THE BURI INGTON NORTHERN RAILROAD BIG III T OF WAY, TOGETHER WITH THAT PORTION OF THE NORTH HALF OF 711E NORTHWEST QUARTER Or THE SOUTHEASTQUAITCFR OF SECTION 13,'fOWNSHIP 22 NORTH,RANGC4 EA51',WILLAMETTE MERIDIAN; IN KING COUNTY,WA%LNG'I"ON,LYING EAST OF NORTH 4TH AVENUE,A5 CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 703685,AND SOUTHEASTERLY OF THE SOUTHEASTERLY MARGIN OF PRIMARY STATE HIGHWAY NUMBER 5,AS CON DCMNED INKING COUNTY SUPERIOR COURT CAUSE.NUMBER 657499; EXCEPTTHAT PORTION OFTHE SOUTH i 90 FFETTHERkOGAS CONVEYED TO KING COUNTY FOR ROAD BY REEDS RECORDED TINDER RCCORDING NUMBERS 7.736881 AND 2736886; AND EXCEPT THAT PORTION OFTHESOUTH 22 FF£TTHEREOF,AS CONVEYED BY KING COUNTY RECORDING NUMBE'k;`�Wi�s TOGETHER WITH THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF THE SOUTI IEASTQUARTER OF SECTION 19,TOWNSHIP 22 NORTH,RANGE 4 FAST,WILLAMETTE MERIDIAN; IN KING COUNTY,WASHINGPON,LYING WEST OF THE BURLINGTON NORTHERN RAILROAD RIGH'14�F WAY) EW,CEP1TITESOUTH22FEET HEREOF,AS CONVEYED BY KING COUNTY RECORDING NUMBER F , 6YEDO 8 By4 d 1,P34G ... 8 2212016 09027A 1362M I0048 -6_ AGREEMENT TO PROVIDE SENIOR HOUSING This Agreement to Provide Senior Housing (this "Agreement") is entered as of the day of 2017, between LARC @ Kent Station, LLC, a Washington limited liability company("Owner), the City of Kent, a Washington municipal corporation ("City") and King County a political subdivision of the State of Washington, ("Count),"). RECITALS A. Owner is the fee owner of certain real property located in the City of Kent, King County, Washington, legally described on Exhibit A attached hereto and incorporated herein by this reference (the "Property"). B. Owner wishes to build and operate a multifamily residential project (the "Project") located at 1001 1" Ave N, Kent WA 98032, to provide a residential environment for individuals aged fifty-five (55)years and older(the "Minimum Age"). C. The Project will consist of multifamily structures each of which contains two or more dwelling units (the "Dwelling Units"), eighty-three (83) of which Dwelling Units shall consist of a room, or a suite of two or more rooms, of which not more than one room is a bedroom and for which occupancy shall be limited to two (2) persons, at least one of whom shall be of the Minimum Age, and the remaining forty-eight (48) of which Dwelling Units shall be occupied by at least one person having reached the Minimum Age. D. City has issued a land use permit to Owner (the "Permit") that specifies in its description that at least one resident in each of the Dwelling Units shall be of the Minimum Age (the"Minimum Age Requirement"). E. State law and the King. County Code ("KCC") require that each user of the County's metropolitan sewage facilities pay the County a capacity charge when that user establishes a new service to sewer facilities of a city that discharge into the County's metropolitan sewage facilities. The capacity charge is a fixed rate set by the County council. It is a monthly charge for fifteen(15) years,billed quarterly. F. At all times relevant herein the capacity charge for multifamily customers was based on the member of residential customer equivalents (BCE's) using the following scale: Five or more units per structure 0.64 RCS's per unit Senior citizen housing 0.32 RCE's per unit The capacity charge for connections in 2017 will be $60.80 per RCE. G. Owner, City and County desire to confirm Owner's agreement to conform to the Minimum Age Requirement and to establish and declare certain conditions and restrictions with respect thereto. 489027.1 1362330 1 0048 -1- AGREEMENT NOW, THEREFORE, in consideration of the benefits to be derived hereunder and the foregoing Recitals, which are hereby incorporated into the Agreement by this reference, Owner, City and County hereby agree as follows: 1. Restriction. Subject to certain exceptions provided by federal Housing and Urban Development regulations and the exceptions outlined below, all Dwelling Units in the Project, when leased, rented or otherwise occupied, shall satisfy the Minimum Age Requirement. For purposes hereof, the Minimum Age Requirement shall be deemed satisfied so long as at least one of the residents in any Dwelling Unit shall have attained the Minimum Age on or before the first day of residency;provided, if Owner in good faith intends for the Project to be solely occupied by residents who have attained the Minimum Age on or before the first day of their residency, and Owner undertakes good faith efforts to prevent or remedy any noncompliance with this requirement, Owner shall not be in breach of this requirement. 2. Exceptions. The Minimum Age Requirement shall not apply to any Dwelling Unit leased or rented to, or occupied by, a resident manager of the Project or owner or employee of resident management company managing the Project. 3. Renorting and Enforcement. Not later than March 1 of each year, Owner shall provide a written report to City and County certifying Owner's compliance with the Minimum Age Requirement. City and County shall have the right to inspect Owner's leasing files, upon written notice of not less than three (3) business days, to confirm Owner's compliance with the requirements of this Agreement. Such inspection shall take place at Owner's management office at the Project during normal business hours. City and County shall maintain the confidentiality of any tenant information which is subject to non-disclosure under applicable law. 4. Notice of Violation. In the event the use of the Project fails to comply with the requirements of this Agreement, Owner or its successor(s) in interest shall give the Director of Community Planning and Development of the City of Kent and the County at the addresses set forth in Section 6 below, immediate written notice of such non-compliance, which notice shall further state the actions Owner proposes to take to cure such non-compliance. In the event such non-compliance, or any other violation of or non-compliance with this Agreement, the Permit or the City's Land Use Code is not cured within the time period for cure of any other violation of this Agreement or the Permit, the sanctions then in effect under the City's Land Use Code for violation or non-compliance with a land use permit or other violation of the Land Use Code shall apply, and the City shall have the right to invoke and enforce any and all remedies available to the City under the Land Use Code for a code violation, including, but not limited to such fines and/or other monetary sanctions as may then apply for violation of the Permit. In addition to and not in lieu of the remedies available pursuant to this Section 4 of this Agreement in the event of a violation of or non-compliance with the requirements of this Agreement, such that the Project or one or more of the units in the Project fail to comply with the requirements of this Agreement and/or the provisions of KCC Section 28.84.050(0)(2)(a) then in addition to any fines, penalties and/or monetary sanctions owed pursuant to this Section 4, the Owner, its successors and assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, as set forth in Section 5. 489027.1 1 362330 10048 -2 5. Senior Housing C".apacity Charge. The Owner acknowledges and agrees that the County's capacity charge for 83 Dwelling Units on the Property will be discounted in consideration of the County's requirement that these 83 Dwelling Units meet the qualifications for the senior citizen housing discount set forth in KCC Section 28.84.050(0)(2)(a). If these KCC requirements are met, then for these 83 Dwelling Units on the Property, the County's capacity charge would be discounted and calculated as follows: 83 units multiplied by the Senior Citizen Housing rate of 0.32 RCS's per unit multiplied by the capacity charge rate in effect at the time of connection of the Property (the rate for 2017 is $60.80 per RCE per month). The Owner acknowledges and agrees that the remaining 48 Dwelling Units at the Property do not qualify under the KCC as Senior Citizen Housing for capacity charge proposes and will be charged at 0.64 RCE per unit. The Owner acknowledges and agrees that if the Owner or its successor(s) or assigns) fails to comply with the requirements of this Agreement and/or the provisions of KCC Section 28.84.050(0)(2)(a) then in addition to any fines, penalties and/or monetary sanctions owed to the City, the Owner, its successors and assigns shall be required to pay to the County the full capacity charge for each and every one of the 83 Dwelling Units, calculated as follows: 83 units multiplied by 0.64 RCS's per unit multiplied by the capacity charge rate in effect at the time of comnection of the Property (in 2017 the rate is $60.80 per RCE per month)plus any other sums assessed against the Owner and/or the Property for non-payment, if any, minus the amount of any capacity charge payments already made by the Owner to the County as of the date of the violation of the Agreement and/or the KCC. The Owner acknowledges and agrees that King County may enforce and collect these amounts against the Property as set forth in RCW 35.58.570 and RCW 57.08.081 and/or any successor state law provisions. 6. Notice. Notices, certificates, reports, or other communications shall be deemed delivered on the third day following the date on which the same have been mailed by certified or registered mail,postage pre-paid,return receipt requested, or on the date on which the same have been personally delivered with proof of receipt, at the addresses specified below, or at such other addresses as may be specified in writing by the parties listed below: If to City of Kent: City of Kent City Clerk 220 4`h Avenue S. Kent, WA 98032 And to: City of Kent Economic & Community Development Director 400 W. Gowe Street Kent, WA 98032 489027.1 1 362330 10048 -3- , If to King County: King County Department of Natural Resources & Parks Wastewater Treatment Division 201 South Jackson Street Seattle, WA 98104-3855 Attn: Director If to Owner: LARC at Kent 110— 110"'Ave NE#550 Bellevue WA 98004 7. Bindin iipon Successors and Assigns. This Agreement shall benefit and be enforceable by the City and/or the County. This Agreement and the requirements hereof shall be binding upon all heirs, assigns and successors of Owner with respect to the Project. 8. Amendment. This Agreement may not be modified in any respect whatsoever, or rescinded, in whole or in part, except by a writing executed by Owner (or its assignee or successor) the City and the County, which writing must expressly state it amends this Agreement, identifying the portion of this Agreement so amended. 9. Fees for Enforcement. In the event any lawsuit, arbitration, or legal proceeding is brought to enforce any of the terms hereof, the prevailing party shall be entitled to recover its reasonable attorney's fees and costs from the non-prevailing party. 10. Governing fi,aw. The Agreement is made and entered into and shall be construed in accordance with ordinances of the City of Kent and the laws of the State of Washington. Venue for any action brought under this Agreement shall be in King County Superior Court. 11. Authority: Representations and Warranties. Each signatory to this Agreement represents and warrants that he or she has full power and authority to execute and deliver this Agreement on behalf of the entity for whom he or she is signing. 12. Entire A're�ent. This Agreement, its Recitals and its Exhibit (which by this reference are incorporated into and made a part of this Agreement) states and constitutes the entire contract, agreement and understanding of the parties and fully supersedes and replaces any prior agreement, discussions, negotiations, and understandings, written or oral with respect to the subject matter hereof. 13, Counterparts nxterparts and Signiatures_by Fax,.oa EmaiB. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. 489027.1 1362330 10048 -4- DATED as of the day and year first written above. LARC @ KENT STATION, LLC, a Washington limited liability company By: LARC @ Kent Station Manager, LLC, a Delaware limited liability company Its: Managing Member By: The LARC Group, LLC, a Washington limited liability company Its: Manager By: Roger W. Kuula, Manager CITY OF KENT, a Washington municipal corporation N' J ,�=_ 4 -�,�=; Narne ,i,Ze ¢ Co ke Title: May, r ...,._, KING COUNTY By: Name: Title: 489027.1 1 362330 10048 -5- EXHIBIT A NEW LEGAL DESCRIPTION: LOT 1 THAT PORTION OF TH E NORTH EAST QUARTER OF SECTION 13,TOWNSHIP 22 NORTH,RANGE 4 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY,WASHINGTON, LYING SOUTHEASTERLY OF THE SOUTHEASTERLY MARGIN OF PRIMARYSTATE HIGHWAY NUMBER 5,AS CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 657499,AND WEST OF THE BURLINGTON NORTHERN RAILROAD RIGHT OF WAY; TOGETHER WITH THAT PORTION OF THE NORTH HALF OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 13,TOWNSHIP 22 NORTH,RANGE 4 EAST,WILLAMETTE MERIDIAN, IN KING COUNTY,WASHINGTON, LYING EAST OF NORTH 4TH AVENUE,AS CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 708685,AND SOUTHEASTERLY OF THE SOUTHEASTERLY MARGIN OF PRIMARY STATE HIGHWAY NUMBER 5,AS CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NUMBER 657499; EXCEPTTHAT PORTION OF THE SOUTH 30 FEETTHEREOFAS CONVEYED TO KING COUNTY FOR ROAD BY DEEDS RECORDED UNDER RECORDING NUMBERS 2736881 AND 2736886; AND EXCEPTTHAT PORTION OF THE SOUTH 22 FEETTHEREOF,AS CONVEYED BY KING COUNTY RECORDING NUMBERQ."9Ij ©E70 TOGETHER WITH THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 13,TOWNSHIP 22 NORTH,RANGE 4 EAST,WILLAMETTE MERIDIAN, INKING COUNTY,WASHINGTON,LYING WEST OF THE BURLINGTON NORTHERN RAILROAD RIGHT OF WAY; EXCEPTTHE SOUTH 22 FEET THEREOF,AS CONVEYED BY KING COUNTY RECORDING NUMBER 'X,pBy e a 45 A 6 818680 ' '4L ts Lo 8/22'/2016 489027.11 M2330 10048 -6- REQUEST FOR MAYOR'S SIGNATURE •NT Print on Cherry-Colored Paper KE „ poa;u,a Routing Information: (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Approved by Director_ Originator: Tom Brubaker Phone (Originator): X5782 Date Sent: 1/4/17 Date Required: 1/6/17 Return Signed Document to: Cheryl Rolcik-Wilcox Contract Termination Date: n7a VENDOR NAME: Date Finance Notified: LARC Kent Station LLC and Kin Count (Only required on contracts / g y $20,000 and aver or on anv Grant) DATE OF COUNCIL APPROVAL: n/a Date Risk Manager Notified:n/a (Required on Non-City Standard Contracts/Agreements) Has this Document been Specifically Account Number: n/a Authorized in the Budget? YES ONO Brief Explanation of Document: Agreement between the LARC @ Kent Station, LLC, King County and the City for LARC to provide senior housing, with LARC conforming to the minimum age requirement for the City permit, and for LARC to meet King County Wastewater requirements and definition for senior apartments to be charged a reduced capacity charge. Note: This agreement concerns the property on Meeker, west of the Kent Station project area, where LARC is proposing to construct multifamily senior housing. REGEHMERustBe Routed Through The Law Department (This area to be completed by tl, Law Be artm t) Received: JAN 4 2Q1'l Approval of Law Dept,: Ak Law Dept. Comments: Date t, Shaded Areas To Be Completed By Administration Staff Recelved IP ReCO Imndaklon5and Comments 4tr + 7V Ir `ems, 4➢ ,,, �� Ltate Returned �t �J ' v rn nu anvunui agaun w mfw or in u+ it CITY OF KENT CITY CLERK e1cn5( retvYYl 0"Lf {vlty Cat ukcl- �nn�•