HomeMy WebLinkAbout5587ORDINANCE No. 5 5 8 7
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AN AGREEMENT FOR THE DEVELOPMENT AND LEASE OF
PROPERTY AT SCOOTIE BROWN PARK.
WHEREAS, the City is the owner of certain real property commonly
known as Scootie Brown Park located at the corner of 8`h Street Northeast and
Henry Road Northeast in Auburn, Washington; and
WHEREAS, the Green River Professional Center LLP, a limited liability
partnership, owns real property located at 1346 Eighth Street Northeast in
Auburn Washington, adjacent to Scootie Brown Park; and
WHEREAS, the City desires to undertake and accomplish certain
improvements to the park, including but not limited to increasing the amount of
off-street parking; and
WHEREAS, Green River Professional Center desires to assist in the
development of additional off-street parking at the park in exchange for the
lease of a portion of the parking spaces from the City; and
WHEREAS, the parties are desirous of entering into a cooperative
Development and Lease Agreement to achieve their respective goals; and
WHEREAS, the parties are desirous of entering into a public Facilities
Extension Agreement for the construction of the improvements and a Lease
Agreement for the long-term use of the site; and
Ordinance No. 5587
November 2, 2001
Page 1 of 3
WHEREAS, a Lease Agreement shall be in effect after the successful
completion of all construction work as identified in Attachment 2 of Exhibit A,
and a completed survey of the parking area by City staff to determine the exact
limits of the Lease Agreement property;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON DOES ORDAIN AS FOLLOWS:
Section 1. Purpose. The City Council hereby approves the
authorization of the Development and Lease Agreement.
Section 2. Implementation. The Mayor and City Clerk of the City of
Auburn are hereby authorized to execute an Agreement with Green River
Professional Center which is attached and designated Exhibit "A" and
incorporated herein by this reference.
Section 3. Effective Date. This Ordinance shall take effect and be in
force five (5) days from and after its passage.
INTRODUCED: Novw-ber 5, 2001
PASSED: November 5, 2001
APPROVED: November 5, 2001
CHARLES A. BOOTH
MAYOR
Ordinance No. 5587
November 2, 2001
Page 2 of 3
ATTEST:
Danielle E. Daskam
City Clerk
AP ROVED AS TO FORM:
J1
Michael J. Reynolds
City Attorney
Published: /%-/ / -Q/
Ordinance No. 5587
November 2, 2001
Page 3 of 3
F
Ordinance No. 5587 Exhibit A
LEASE AGREEMENT
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THIS AGREEMENT, made and entered into this l day of
November, 2001, by and between the City of Auburn, a Washington Municipal
Corporation in King County, Washington, hereinafter referred to as "City" and
Green River Professional Center, LLP, a Washington limited liability
partnership, hereinafter referred to as "GRPC".
WHEREAS, CITY is the owner of that certain real property commonly
known as Scootie Brown Park, hereinafter referred to as PARK, located at the
corner of 8th Street Northeast and Henry Road Northeast in the City of Auburn,
Washington, and more particularly described in Exhibit 1 attached hereto; and
WHEREAS, GRPC is the owner of that certain real property located
adjacent to the PARK at 1346 Eighth Street Northeast, in Auburn, Washington;
and
WHEREAS, the CITY desires to undertake and accomplish certain
("Improvements") to the PARK, including but not limited to increasing the
amount of off-street parking; and
WHEREAS, GRPC desires to assist in the development of additional off-
street parking in the PARK in exchange for the lease of a portion of the parking
spaces from the CITY; and
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 1 of 11
WHEREAS, the parties are desirous of entering into a cooperative Lease
Agreement to achieve their respective goals ("Agreement"); and WHEREAS,
the parties are desirous of entering into a public Facilities Extension Agreement
for the construction of the improvements and a Lease Agreement for the long-
term use of the site; and
WHEREAS, a Lease Agreement shall be in effect after the successful
completion of all construction work as identified in Attachment 2 of Exhibit A,
and a completed survey of the parking area by City staff to determine the exact
limits of the Lease Agreement property;
NOW THEREFORE, for and in consideration of the mutual exchange of
covenants and obligations contained here, the parties agree as follows:
1.
Indemnification/Hold Harmless. Lessee shall defend,
indemnify, and hold harmless the City, its officers, officials,
employees, and volunteers from and against any and all claims,
suits, actions, or liabilities for injury or death of any person, or for
loss or damage to property, which arises out of Lessee's use of
Premises, or from the conduct of Lessee's business, or from any
activity, work or thing done, permitted, or suffered by Lessee in or
about the premises, except only such injury or damage as shall
have been occasioned by the sole negligence of the City.
2.
Insurance: The Lessee shall procure and maintain for the
duration of the Agreement, insurance against claims for injuries to
Ordinance No. 5587
— Exhibit A
Lease Agreement
November 2, 2001
Page 2 of I 1
persons or damage to property which may arise from or in
connection with the Lessee's operation and use of the leased
Premises.
A. Minimum Scope of Insurance: The Lessee shall obtain
insurance of the types described below:
1. Commercial General Liability insurance shall be
written on Insurance Services Office (ISO)
occurrence form CG 00 01 and shall cover premises
and contractual liability. The City shall be named as
an insured on Lessee's Commercial General Liability
insurance policy using ISO Additional Insured -
Managers or Lessors of Premises Form CG 20 11 or
a substitute endorsement providing equivalent
coverage.
2. Prooertv insurance shall be written on an all risk
basis.
B. Minimum Amounts of Insurance: Lessee shall maintain
the following insurance limits:
1. Commercial General Liability insurance shall be
written with limits no less than $2,000,000 each
occurrence, $4,000,000 general aggregate
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 3 of 1 I
2. Property insurance shall be written covering the full
value of Lessee's property and improvements with
no coinsurance provisions.
C. Other Insurance Provisions: The Insurance policies are
to contain, or be endorsed to contain, the following
provisions for Commercial General Liability insurance:
1. The Lessee's insurance coverage shall be primary
insurance as respect the City. Any Insurance, self-
insurance, or insurance pool coverage maintained
by the City shall be excess of the Lessee's
insurance and shall not contribute with it.
2. The Lessee's insurance shall be endorsed to state
that coverage shall not be cancelled by either party,
except after thirty (30) days prior written notice by
certified mail, return receipt requested, has been
given to the City.
D. Acceptability of Insurers: Insurance is to be placed with
insurers with a current A.M. Best rating of not less than
ANIL
E. Verification of Coverage: Lessee shall furnish the City
with original certificates and a copy of the amendatory
endorsements, including but not necessarily limited to the
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 4 of 11
additional insured endorsement, evidencing the insurance
requirements of the Lessee
F. Waiver of Subrogation: Lessee and Landlord hereby
release and discharge each other from all claims, losses
and liabilities, arising from or caused by any hazard
covered by property insurance on or in connection with the
premises. This release shall apply only to the extent that
such claim, loss or liability is covered by insurance.
3. Parking Space Lease: Upon final completion of the
Development Work and acceptance by the CITY, GRPC shall
have the limited non-exclusive use, subject to the terms and
conditions herein. GRPC, its members, lessees, licensees,
customers, employees, and authorized persons shall be entitled to
the non-exclusive use of the GRPC Parking Spaces between the
hours of 6:00 a.m. and 6:00 p.m.. Monday through Friday,
inclusive.
4. Lease Rate:
A. Economic Benefit: The CITY has evaluated and
determined that the economic benefit to be derived by the
citizens of the CITY as a result of the financial expenditures
to be made by GRPC to complete the improvements
justifies the leasing of parking spaces to GRPC for an
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 5 of 11
annual rate of One Dollar ($1.00) per year for a term of
thirty (30) years.
B. Payment. Prior to GRPC commencing use of he parking
spaces, GRPC shall pay the CITY THIRTY DOLLARS
($30.00) IN PREPAYMENT OF ALL LEASE PAYMENTS.
C. Determination of Lease Rate, Amortization and Term.
Determination of the equitable thirty (30) year, one dollar
($1.00) per year Lease Rate from GRPC to be derived by
the citizens of the City of Auburn have been calculated as
follows:
1. Non -Exclusive use paved parking area for
GRPC employees 'weekday" parking 70 ft x 125 ft = 8,750 s.f.
2. Value per square foot of underlying lands @ 6.00 s.f.
3. Gross value of underlying lands: $52,500.00
4. Times 10% Annual Return calculation on
Joint Lease Parking Lot Only X 10%
5. Land Lease Value Per Year @ 10% Return $ 5.250.00 Yr.
6. Cost of Development Work Improvements
and municipal benefits to be borne by GRPC
$ 150.000.00
7. Recovery amortization of GRPC Venture
Capital
Amortization Schedule: $150,000/$5,280 =
28.57 yrs.
Joint Use Extension Factor: (Allow)
1.43 yrs.
Agreement Term:
30.00 yrs.
8. Pre -Agreed Net Lease Rate and Term for
Purposes of this Agreement and
Amortization Work Cost:
1.00 Yr.
30.00/Yr
5. Early Termination
A. Early Termination. City reserves the right to terminate the lease
with GRPC after the first fifteen (15) years by paying a termination
fee to GRPC.
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 6 of 1 I
Termination Fee. In the event the City elects to terminate the
lease after the first fifteen (15) years, the termination fee shall be a
cash sum equivalent to the unamortized portion of the Total Project
Cost referred to Paragraph 3c above.
Amortization Cost Factor. The annual amortization cost for
purposes of determining the Lease Term will be the rate of
$5,250.00 per year as calculated in Paragraph 9c(1) through (8)
above and would yield an Early Termination Fee payable by the
CITY to GRPC in accordance with the schedule appended as
Attachment "A".
Maintenance. Following completion and acceptance of the Development
Work, the CITY shall be responsible to maintain and operate the Park,
including the Improvements, in accordance with its customary practices.
6. Miscellaneous.
A. Governina Law. The parties hereto expressly agree that the terms
and conditions hereof, and the subsequent performance hereunder,
shall be constructed and controlled by the laws of the State of
Washington.
B. Further Instruments. Each party shall from time to time execute
and deliver such further instruments as the other party or its
counsel may reasonably request to effectuate the intent of this
Agreement.
C. Entire Agreement — Alterations or Amendment. This Agreement
constitutes the entire agreement between the parties hereto. The
parties do not rely upon any statement, promise or representation
not herein expressed, and this Agreement once executed and
delivered shall not be changed, amended, modified or altered in
any respect except by a writing executed and delivered in the same
manner as required by this document.
D. Time is of the Essence. Time is of the essence of this
Agreement.
E. Assignment. The parties hereto may not assign this Agreement
without the written consent of the other party first having been
obtained, but such consent shall not be unreasonably withheld.
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 7 of 11
F. Attorneys' Fees. In any suit, action, or appeal therefrom to
enforce or interpret this Agreement or any term or provision hereof,
the prevailing party shall be entitled to recover all of its costs
incurred, including its attorney's fees.
G. Non -Waiver. The failure of City to enforce at any time any
provision of this Agreement shall in no way be construed to be a
waiver, nor in any way effect the validity of this Agreement or any
part hereof, or the right of City thereafter to enforce each and every
provision of this Agreement.
H. Notices. Any notice, demand, offer, or communication required or
permitted to be given hereunder shall be in writing, addressed to
such party at the address set forth below and shall be deemed to
have been sufficiently given or served for all purposes if sent by
registered or certified mail, postage and charges prepaid, or by
Federal Express (or other reputable overnight courier), or delivered
in person with proof of service. Any such notice shall be deemed to
be given upon the earlier of proof of receipt thereof three (3)
calendar days after the date on which it was deposited in a
regularly maintained receptacle for the deposit of United States
Postal Service Mail or one (1) calendar day after the date on which
it was deposited with an overnight courier depository. Notices shall
be addressed as follows:
To CITY: Director of Parks and Recreation
25 West Main
Auburn, Washington 98001
To GRPC: c/o Ted Walker
1346 8t' Street Northeast
Auburn, Washington 98002
Exhibits. All exhibits attached hereto or initialized by the parties
are incorporated herein by this reference.
J. Successors. This Agreement shall be binding upon the parties
hereto, their administrators, heirs, successors or assigns (if
permitted hereunder).
K. Counterparts. This document may be executed in any number of
counterparts, each one of which shall be considered an original.
Ordinance No. 5587 —Exhibit A
Lease Agreement
November 2, 2001
Page 8 of 1 I
CITY OF AUBURN
&,4,- . rai
Charles A. Booth, Mayor
Date // - % -0
GREEN RIVER PROFESSIONAL
CENTER,LLP
By:>
Title:
Date
ATTEST:
DNIjelle E. Daskam, City Clerk
APPROVED AS TO FORM:
Michael J. eynolds, ity Attorney
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 9 of 11
STATE OF WASHINGTON)
) ss
COUNTY OF King )
On this _'ZL day of 0 � , 2001, before me, the undersig d, a
P blic in 4nd for the State of Washington, personally appeared
�1Q�Io� to me known to beithe Mr, tir, co c a >~,
LaW7:T:nr�'�a'a' ZW.�til�'iitii �
(corporation, sole proprietorship, partnership, or individual) who executed the within and
foregoing instrument, and acknowledged said instrument to be the free and voluntary
act and deed of said (corporation, sole proprietorship, partnership, or individual), for the
uses and purposed therein mentioned, and on oath stated that he/she is authorized to
execute said instrument on behalf of said (corporation, sole proprietorship, partnership
or individual).
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the date hereinabove set forth.
ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 10 of 1 I
E�
NOTARY PUBLIC in and r the tate of
Washington, residing at
MY COMMISSION expires `7 -a$ -G 5
STATE OF WASHINGTON)
) ss
COUNTY OF King )
On this 4� e day of AA'elk 6, , 2001, before me, the undersigned, a
Notary Public in and fort a State of Washington, duly commissio ed and sworn
personally appeared Cel ` i ce and ., ,�
to me known to be the Mayor and City Clerk, respectively, of the City of Auburn, a
municipal corporation, and the corporation that executed the foregoing instrument, and
acknowledged said instrument to be the free and voluntary act and deed of said
corporation, for the uses and purposes therein mentioned, and on oath stated that they
are authorized to execute the said instrument and that the seal affixed is the corporate
seal of said corporation.
WITNESS my hand and official seal hereto affixed the day and year first above
written.
,. a..
IAJ'
1-�•'Q N ``'`'. "m': r ; NOTARY PUBLIC in and for the State of
, Washin tonresiding at
9 9
MY COMMISSION expires /0-4/ -o
Ordinance No. 5587 — Exhibit A
Lease Agreement
November 2, 2001
Page 11 of 11
ATTACHMENT 2
pg 1
PRELIMINARY PROJECT COST ESTIMATE
Scootie Brown Park
Public/Private Parking Lot & Park Improvements
Budget Allowances 10/3U/2000 I* Rev. 9/25/2001)
GRPC CITY
BoundarySurvey $ N/A (By City) $1,000
Topographic Survey, Engineering & Design
Topography 1,150.00 (GRPC)
Storm & Civil Designs 4,800.00 (GRPC)
Infiltration Rale Analysis 680.U0 (GRPC)
Landscape Designs N/A (By City) 1,500
Demolition
Asbestos Assessment
N/A
(By City)
500
Demolition & Asphalt Removal
3,500.00
(GRPC)
Earthwork & Rough Grading
12,500.00
(GRPC)
Storm Sewer System Allowances
Retention, Detention and/or Infiltration
15,000.00
(GRPC)
Pipe & Catch Basins
15,000.00
(GRPC)
Concrete Sidewalks
5,000.00
(GRPC)
Curb, Gutter & Parking Lot Striping
4,678.00
(GRPC)
Asphalt Paving
13,182.00
(GRPC)
Relocated Basketball Court
Paving & Surface
3,500.00
(GRPC)
Newlloops, Court Striping, etc.
N/A
(By City)
1,200
New Pickleball Court Paving
1,500.00
(CRPC)
Nets, Court Striping, etc.
N/A
(By City)
750
Landscape & Irrigation:
Landscape Plants & Irrigation Materials
6,500.00
(GRPC)
Irrigation Plumbing & Plan! Placements
N/A
(By City)
3,500
Municipal Fees & Permits (Allow)
7,500.00
(GRPC)
Sub -total:
$ 94,490.00
$ 450
Supervision & General Conditions @ 15%
14,174.00
1.267
Sub -total
$108,664.00
$ 9,717
Contingencies Allowance @ 10%
10,866.00
971
Sub -total:
$119,530.00
$10,689
Plus: Storage Shed Relocation Allowance
30,000.00 (*) (GRPC)
Total GRPC Costs Estimate Forecast:
$149,530.00
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