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(1) Director’s Decision. The Director may certify as eligible an application that is determined to comply with the requirements of this chapter. A decision to approve or deny an application shall be made within 90 calendar days of receipt of a complete application.

(2) Contract Required.

(a) If an application is approved, the applicant shall enter into a contract with the City, subject to approval by the City Council in the form of a resolution, regarding the terms and conditions of the project and eligibility for exemption under this chapter. This contract shall be a covenant running with the land and shall be binding on the assigns, heirs, and successors of the applicant.

(b) For any development project including owner-occupied units, the contract with the City shall also require that an owners association organized under RCW 64.34.300 be formed for all owner-occupied units within the development for the length of the exemption period granted to assume the responsibility for collecting the necessary information and documents from all individual unit owners to complete the annual reporting requirements and for filing the required annual report with the City for each of the individual homeowners pursuant to CMC 3.80.100.

(3) Issuance of Conditional Certificate. Upon City Council approval of the contract, the Director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three years from the date of City Council approval unless an extension is granted as provided in this chapter.

(4) Application Denial. If an application is denied, the Director shall state in writing the reasons for denial and shall send notice to the applicant at the applicant’s last known address within 10 calendar days of issuance of the denial.

(5) Application Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the City Council within 30 calendar days of receipt of the denial by filing a complete appeal application and appeal fee, as set forth in the City’s current fee resolution, with the City Clerk. The appeal before the City Council shall be based on the record made before the Director. The Director’s decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the Director’s decision. The City Council’s decision on appeal is final.

(6) Amendment of Contract. Within three years of the date from the City Council’s approval of the contract, an owner may request an amendment(s) to the contract by submitting a request in writing to the Director. The fee for an amendment is as set forth in the City’s current fee resolution. The Director shall have authority to approve minor changes to the contract that are reasonably within the scope and intent of the contract approved by the City Council. Amendments that are not reasonably within the scope and intent of the approved contract, as determined by the Director, shall be submitted to the City Council for review. The date for expiration of the conditional certificate shall not be extended by contract amendment unless all the conditions for extension set forth in CMC 3.80.070 are met. (Ord. 13-12 § 1 (Exh. 1); Ord. 05-12 § 1 (Exh. 1))