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Home My WebLink About5384 RESOLUTION NO 5384 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DECLARING CERTAIN REAL PROPERTY AS SURPLUS; AND AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF AUBURN AND PAPE PROPERTIES, INC. WHEREAS, The City purchased, pursuant to Resolution 4099, 302 Lund Road SW from King County on September 19, 2006 for the overall enhancement of the City; and WHEREAS, on November 27, 2017 the City's Real Property Analyst sent out an email inquiry to all departments seeking any current or future need for this real property and no current or future need was identified for this property; and WHEREAS, Pape Properties Inc. approached the City seeking to purchase 302 Lund Rd SW for wetland enhancement mitigation of non-City owned parcels; and WHEREAS, The sale of 302 Lund Rd SW is in the public interest as it creates an opportunity for economic enhancement of the area and future City revenues through commercial development of other private parcels. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the following legally described property is declared surplus to the City's needs: LEGAL DESCRIPTION. LOT 2 OF AUBURN SP-11-85, RECORDING NO. 8601080790, SAID SHORT PLAT, DESCRIBED AS FOLLOWS: WEST 3/4 OF THE WEST % OF THE NE % Resolution No. 5384 September 25, 2018 Page 1 of 2 OF THE SW%OF SECTION 13,TOWNSHIP 21 NORTH, RANGE 4 EAST,W.M., KING COUNTY, WASHINGTON, LESS STATE ROAD, LESS COUNTY ROAD more commonly referred to by King County tax parcel 1321049104, or by street address 302 Lund Rd. SW, Auburn, WA 98001. Section 2. That the Mayor of the City of Auburn, or the mayor's designee, is authorized to negotiate and execute a Purchase and Sale Agreement with Pape Properties Inc. with the Agreement being in substantial conformity to the Letter of Intent, attached as Exhibit A. Section 3. The Mayor is further authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 4. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this \ day of , 2018. CITY OF AUBURN _ _ is ANCYBA % , AYOR ATTEST: Shawn Campbell, MMC,,City Clerk APPROVED AS TO FORM: Steven L. Gross, City Attorney Resolution No. 5384 September 25, 2018 Page 2 of 2 Property Profile Parcel: 1321049104 Property Name: Supporting Documents 1321049104 http://archives/internal/ElectronicFile.aspx?docid=283360&dbid=0 Wetland Report 1321049104 http://archives/internal/ElectronicFile.aspx?docid=283359&dbid=0 Wetland Map 1321049104 RES http://archives/internal/DocView.aspx?id=141664&searchid=6e85ce71-7d50-4311-819e-af5e2c1a2066&dbid=0 4099- Authorization to Purchase 1321049104 http://archives/internal/DocView.aspx?id=139687&searchid=28032247-0df1-4322-82e1-af8ccabbOd5e&dbid=0 ORD 6037- Environmental Park Rezone 1321049104 http://archives/internal/O/doc/150849/Paoel.aspx Warranty Deed 1321049104 http://archives/internal/DocView.aspx?id=312236&searchid=5ba4688c-a459-48a7-b48d-Od37e6bcbc80&dbid=0 ORD 6660- Rezone back to M1 For additional information please contact Josh Arndt atjarndt@auburnwa.gov Report Created by eGIS:10/1/2018 1:58:37 PM Purchaser: Purchasers Broker: Seller/City of Auburn Contact: Pape Properties,Inc: Dave Nelson Josh Arndt Mike Pati Dave Nelson Real Estate Sr.Economic Development General Manager 425.3193100 Officer 503.758.7222 Dave.DNREPernail:com 253.561:1235 MoatiPpape.com jarndtc autiurnwa.soy Letter of intent August.3,2018 RE: Letter of Intent to Purchase 302 Lund Road,Auburn,WA 98001 from the City of Auburn for the purpose of Wetland Mitigation with the adjacent properties located at 922 and 940 West Main Street in the City of Auburn,WA 98001.The following terms shall be incorporated Into a.binding Purchase and Sale agreement. TERMS Purchase Price: The purchase price shall be a minimum of$200;000.00 or the appraised price as established by an MAI;appraisal if higher than the minimum.The appraised price shall be established by the Seller's appraiser. If the Buyer does not agree with that price,it may obtain an appraisal at its own expense.If the Buyer's appraisal is more than 15%below the Seller's appraisal,the Buyer and Seller's appraisers shall Jointly select a third appraiser,and that appraisal price shall be the purchase price,as long as it is above$200,000.00 The parties will split the cost of the third appraisal. If the Buyer's appraisal is less than 15%below the Seller's appraisal,the average of the Buyer's and Seller's appraisals shall be the purchase price,as long as it is above$200,000.00. The purchase price shalt:be all cash at closing. Buyer's Initial Deposit Upon execution of a Purchase and Sales Agreement,buyer shall deposit Ten Thousand Dollars and no cents($10,000.00)into escrow.Buyer's initial Deposit shall become non-refundable upon removal or expiration ofbuyers feasibility period. Feasibility Period: The feasibility period shall be for 6 months from the time the buyer and seller have entered Into a definitive agreement for the purchase of the property. Buyer shall have the sole responsibility to determine its ability to use the property for development of a new Pape Kenworth Parts,Sales and Service facility. Buyer shall have up to two(2)three-month extensions of the feasibility period (Feasibility Extension Periods): Request for each Feasibility Extension Period must be submitted in writing to the City prior to expiration of the then current feasibility period.As compensation for each Feasibility Extension Period buyer must deposit an additional Five Thousand Dollars and no cents($5,000.00)into escrow with instructions that escrow shall release said compensation to seller immediately.Such compensation shall be forfeited if Buyer declines to purchase the property.Should the Buyer elect to close on the property then the compensation for the Feasibility Extension Period(s)shall be applied toward the purchase price of the property at closing. Appraisal: The Seller shall initiate and cause an MAI appraisal to be done on the property.The Buyer shall reimburse the Seller up to Eight Thousand dollars($8,000.00)for the Seller's cost of appraisal either at dosing or,if Buyer declines to buy the property,within 10 days of notifying the Seller of its intent to not buy the property. Sellers Disclosure Buyer agrees to waive the Seller's Disclosure Statement under Statement: RCW 64.06.010 with the exception of item 6"Environmental" under RCW 64.06.013. Prior to closing the Buyer shall check the property for hazardous substances and Seller shall be given the opportunity,but not obligation to remediate any concerns brought to the attention of environmental authorities. Title: The seller shall order and provide a preliminary commitment for an owner's standard coverage policy of title insurance issued by Stewart Title. Closing: Closing shall be 30 days after the expiration or waiver of the feasibility or feasibility extension period,whichever comes first. Closing Costs: Each party shall be responsible for paying their portion of the total closing costs. Conveyance: Conveyance of the property shall be delivered in the form of a Bargain and Sale Deed.Buyer acknowledges and accepts that the deed being conveyed to buyer may have restrictions for among other things allowable uses of the property. Agency: The parties to this Letter of intent acknowledge that the Buyer's broker is Dave Nelson of Dave Nelson Real Estate and that he shall be paid by the buyer at dose of escrow in the amount of 5% commission. The parties further acknowledge that the Seller isnot represented. by a broker but if one is hired,that broker would be paid by the seller. Council Approval: The surplusing and sale of the seller's property is subject to the approval of Auburn City Council which action shall be given by resolution. This Letter of Intent and the terms within are non-binding to both parties.They are intended rather as a summary of terms for the potential future binding purchase agreement.By signing below each party acknowledges and agrees to proceed in good faith effort towards the execution of a binding purchase agreement that is in substantial conformity of the above terms. BUYER SELLER Signature: ` " l� Signature: o„ d `.._ .. . Print Name: A7/1‘Fiefr7 Print Name: k it M:! Title: GbV .:/1141,0v466c, Title:_ Nor Date: 9/4i) __..._..._ date; � � to (._ 3 Property Profile Parcel: 1321049/04 Property Name: 1§ Aki CI 3° 's r r-.+w. a �'• ,}` t��...'-�.....x...��.. fur—`" t. ^--.t d - � f ^"rjt iLntl ^L1,. t ': .a yam}jref ,'if' .Z" f V; f''".;<l�,1 .iii_ ' _ r ii �; -e - 1F i ;a.i -1L� t � � � " lr'�1 '`rt ` - t 1 r 6 Yr � r 1 P J a�g{ �rr�- (( '"��6?ti s . .. ,` i 1.Y s� -, c e» , 4�. ' li':4,."--';-• a r . ' I�' h'C i ; r'.,...,1.„.,,,,,,,...f: ??!: 'a _ a ,_. '. }x —,. `u —j i'.v. a � y„ r ,* ^ 0.',' l w 1. >k:rx°' -4411.-_-�'1 tf' S' , �f I;..1',, , ' Jas i `i � cep! 4..., .. rs 1; 7 • T >T�lh�kz. r� � ,v+, a t . :. r gun *ro '.7� S r ' j 8 f5 i '�Y 1`,' .. 0� l'' �1 ,fir@ i ' � i:,,,,,:...1•:-.., INi'_'� w �i �I a e�j p7 { tip *�l }rf �k x r. ,.] II :',.i.-:;—;21:...,.,,„„,s.,..:._, Is 1l ' ••L .. :11mr? CSL1'1 r"N414• "?•!` 1 ', �- V r, "tt Ir.,. ,:. ,�5, r I{, ,:� I ,rye C"f "e ,,I.,-,44.,!..,:::G x t { ' it., e..' .-. S ^,, ^, i 1A i i yx � N-L+�i, l i%'r w'i, r' r-' t r- `�yP. t ..;-may ulq tir 1 7 , I1 y r ,- 714,3,.,--,...- ` 1 r'f ; i1' - sJ � r � "s J =`' �, . s ,d" ,,,,...+,...,,, " a�' + UY'. ( i r� /I. ��pd �+ C /r i(" „�r -�^,,; '�` «-- _ es' �>I'��Ma � f�'� ,,,,r,-!..t ,, �Cr 4l "`` �I � � ��i -,'`� .>.^ .c --......„, _i -:,.,,,.. •_, (1, ._ ri L .. y *,cm, .r6tl ,, Arot i' �t 11 iwi `y*imp p y ri ,� i� 3", #Sf r ^1i 77;;' + f: sf�d .f 7 .- m x7f-„1,Ir i.1 III 1A gF.- _-�V ,41.,:, y'i J k..,r ..--------"t, ,I -�( tt. 1- ?j "'_;'”k -;P1a C '� i,t,-t ... - Mfr if,,.,' f:11'.._,t. , r„ r 1 d. I •' 13 ,, ` y, x., 11� S A .1�' � '�' � � � I I W f f ' 1 b�I ,i ]��t }}� Property Information LIGHT INDUSTRIAL Street Address: 302 Lund Rd Building(SqFt): Size(Acres): 8.26 Zoning: DISTRICT Department: Administrations Current Use: Vacant land.100%Wetland City Fund: Purchased using General Fund 328 Capital Improvements.Held in Fixed Assets GL#910.171.113 How/Why Acquired: The property was purchased for$180,000 from King County on 9/19/2006 for the overall enhancement of the area.Resolution 4099 authorized the purchase. Deed Restrictions: YES Deed Restrictions Notes: Property must be maintained as wetlands or mitigated per SEPA requirements. Planned Future Use: Nothing at this time.ED/RE recommends surplus action Notes This and other surrounding properties were rezoned in October,2006 from either M1 Light Industrial or R2 Single Family Residential to EP Environmental Park District(ORD 6037).City Council through ORD 6660 then rezoned most of the properties back to M1 Light Industrial on 10/16/17 This site is a Category II Wetland.See ACC 16.10.010 Section C for enhancement and creation of wetland ratios.Property is 100%wetland,with roughly 5 of the 8.26 acres being emergent vegetation and the remaining 3.26 acres being forested wetland. The 5 acres of emergent wetlands has a high-probability of potential for wetland enhancements that could be used to compensate for impacts imposed by future development activities within the City. King County acquired the property in 1992 due to delinquent property taxes. City assessed LID liens against the property which came due March 10,1997.City wrote off total balance of LID in amount of$190,624.40 once City acquired ownership. For additional information please contact Josh Arndt at iarndt@auburnwa.gov Report Created by eGIS:10/1/2018 1:58:37 PM