To qualify for exemption from property taxation under this section, the project must satisfy all of the following requirements:
A. Location. The project must be located within a residential target area identified in LMC 3.64.030.
B. Size. The qualifying new multifamily residential apartment project must include a minimum of twenty units of multifamily housing. Existing multifamily housing that has been vacant for twelve months or more does not have to provide additional units.
C. Exception for Existing Residential Structure. In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multifamily housing, the project must provide as a minimum number of dwelling units in the new multifamily housing project, the greater of:
1. Replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve months or more prior to demolition, provide for a minimum of four additional dwelling units in the new multifamily housing project; or
2. Provide the number of dwelling units otherwise required in subsection B of this section.
D. Exception for New Mixed Use and Mixed Use Redevelopment Projects.
1. New and redevelopment projects of existing buildings located within the residential target area proposing a mixed use commercial, office, and/or retail project with multifamily residential units may qualify for the tax exemption if four or more residential units are included within the project.
E. Compliance with Guidelines and Standards. The project must be designed to comply with the city’s Comprehensive Plan, building, housing, and zoning codes and any other applicable regulations in effect at the time the application is approved. Specifically, the requirements of Chapter 16.24 LMC, Woodland District, and Chapter 14.23 LMC, Design Review, must be satisfied in addition to any other standards and guidelines adopted by the city council for the residential target area in which the project will be developed.
F. At least fifty percent of the space in new, converted, or rehabilitated multiple units must be for permanent residential housing. In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional units.
G. The applicant must enter into a contract with the city, approved by city council, under which the applicant agrees to the implementation of the development on terms and conditions satisfactory to the city council.
H. Completion Deadline. The project must be completed within three years from the date of approval of the contract by the city council. The administrator may grant one two-year extension, provided the applicant has demonstrated a good faith effort to complete the project.