June 30, 2025

“1. ©0240-25 Order/s/ Councilor Stephanie Martins, as President An order to consider a proposed Donation Agreement for financial contributions between The Sofia 2nd Street LLC and the City of Everett and to further amend the approved Tax Increment Financing ("TIF") Agreement to include reference to said Donation Agreement Question divided Councilor Smith made a motion, seconded by Councilor Garcia, to split the question to vote separately on 1) the Donation Agreement and 2) amendments to the TIF, with the intent to vote on both tonight. The motion to split the question passed 6-1 by roll call vote. Councilor Smith made a motion, seconded by Councilor Garcia, for favorable action on the proposed donation agreement. The motion passed 5-2 by roll call vote. Matthew Lattanzi, Director of Planning & Development, was invited to speak. Councilor Smith asked about an amendment stating the City would pay legal fees to establish the "Sophia Good Neighborhood Fund". Mr. Lattanzi explained similar 501c3 filing fees for another organization were around $1 500-$2000..\ umber {{item.number} Representatives from Fulcrum Global Investors LLC were invited to speak. They explained the legal fees were added because the parameters of the fund's operating agreement were unknown. They stepped out to call Scott Brown about the legal fees. Councilor Pietrantonio felt the Council should have finalized the Donation Agreement before passing the TIF. He wanted to know if the Council could still make amendments to the TIF. Mr. Lattanzi advised that changing the tax exempt status of the 62 affordable units would be a material change requiring other financial aspects of the TIF to be renegotiated. The Fulcrum representatives returned and stated Scott Brown confirmed they would pay the legal fees to establish the fund. Councilor Smith made a series of amendments: 1. In Section B3, strike "in consideration of the TIF" and insert "for the duration of the TIF" regarding the tax exempt status of the affordable units. Passed 7-0. 2. In Section B3, add the sentence "VASH units must serve all income eligible veterans, including low-income veterans." Passed 7-0. 3. In Section B10, replace "The City" with "The Sofia Second Street LLC" regarding establishing and paying for the fund. Passed 7-0. 4. In Section B10, add "and in accordance with the donation agreement" to link the TIF and Donation Agreement. Passed 7-0. Councilor Garcia questioned removing the amendment about the affordable units being tax exempt. Mr. Lattanzi advised this would be a major change requiring other parts of the TIF to be renegotiated. Councilor Smith made a motion, seconded by Councilor Pietrantonio, for favorable action on the TIF as amended. The motion passed 5-2. Councilor Hanlon spoke in opposition to the overall project, arguing it would hurt the city and residents. He felt the Council should learn lessons from this for two other large developments in the pipeline. MOTION: Favorable Action MOVER: Stephanie Smith SECONDER: Katy Rogers RESULT: Passed [6 TO 1] AYES: Garcia, Matewsky, Rogers, Pietrantonio, Smith, Martins NAYS: Hanlon AWAY:.” (Motion: Stephanie Smith, second: Katy Rogers)

Read it in the official minutes, page 2 (PDF)

“2. C0240A-25 Order/s/ Councilor Stephanie Martins, as President An order to consider a proposed Donation Agreement for. fi nga iPuti between The Sofia 2nd Street LLC and the City of Everette BePEREHP Amber} MOTION: Favorable Action MOVER: Stephanie Smith SECONDER: Holly Garcia RESULT: Passed [5 TO 2] AYES: Garcia, Matewsky, Rogers, Pietrantonio, Martins NAYS: Hanlon, Smith AWAY:.” (Motion: Stephanie Smith, second: Holly Garcia)

Read it in the official minutes, page 3 (PDF)

“3. C0240B-25 Order/s/ Councilor Stephanie Martins, as President An order to further amend the approved Tax Increment Financing ("TIF") Agreement to include reference to said Donation Agreement MOTION: Favorable Action MOVER: Stephanie Smith SECONDER: Peter Pietrantonio RESULT: Passed [5 TO 2] AYES: Hanlon, Matewsky, Rogers, Pietrantonio, Martins NAYS: Garcia, Smith AWAY:.” (Motion: Stephanie Smith, second: Peter Pietrantonio)

Read it in the official minutes, page 3 (PDF)