HomeMy WebLinkAbout5023 RESOLUTION NO. 5 0 2 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR
TO EXECUTE A RELEASE AND SETTLEMENT
AGREEMENT BETWEEN THE CITY OF AUBURN AND
THE LEHNERTZ FAMILY LLC, FOR SETTLEMENT AND ,
DISMISSAL OF THE LAWSUIT FILED IN THE KING
COUNTY SUPERIOR COURT UNDER CAUSE NUMBER
13-2-03852-8 KNT
WHEREAS, in connection with the construction ofi a commercial 'building by the
Lehner� Family LLC in downtown Aubum — af 102 West Main Street, Aubum,
Washington — and b.ased on its intended uses, the parking codes of the City required
the provision of eighty-five (85) parking spaces for useby its patrons; and
WHEREAS; fhe parking space requirement could be provided either by (1) on-
site parking facilities, (2) off-site private parking spaces or (3) contribution to public
parking spaces, such as through an LID; and
WHEREAS, because the Lehnertz Family LLC did not have space available to
provide on-site parking or off-site parking, the option selected to meet the parking
spaces necessary for constructing their building was a contribution to public parking
spaces through an LID — LID No. 250; and
WHEREAS, subsequent to 4he construction ofthe Lehnertz Family LLC building,
when it was realized that there was no assurance that the public parking spaces for
which the LID payments were made would always be available for the Lehnertz Family
LLC building and its employees and customers, the Lehnertz Family LLC filed a claim
against the City of Auburn based on an expectation of the ability to utilize parking
spaces; and
Resolution No. 5023
January 6, 2014
Page 1 of 3
WHEREAS, in settlement of the initial Lehnertz Family LLC claim, the City paid
two hundred thousand and no/100 dollars ($200,000.00) to the Lehnertz Family LLC,
and the parties agreed that the City had control of the parking spaces, which settlement
was reflected in a Release and Settlement Agreement executed by the parties on
November 7, 2007, and approved by#he Auburn City Council in Resolution No. 4262;
and
WHEREAS, subsequent thereto, the City transferred and conveyed to Central
Fuget Sound Regional TransitAuthority [Sound Transit] control of and responsibility for
the 85 parking spaces with the proviso that they remain available for public parking; and
WHEREAS, although these parking spaces were and are available for public
parking, because of an increasing Sound Transit commuter need, the parking spaces
have consistently been utilized by commuters who occupy them between the hours of
6:30 am to 5:30 pm, leaving them essentially unavailable for other public parking uses
during that time; and
WHEREAS, the Lehnertz Family LLC filed another claim against the City,
claiming that the transfer of the parking spaces to Sound Transit essentially eliminated
their use and availability for public parking between the hours of 6:30 am to 5:30 pm,
and 6ased on this second claim, the Lehnertz Family LLC filed a lawsuit against the
CITY in the King County Superior Court, under Cause Number 13-2-03852-8 KNT; and
WHEREAS, in light of discussions between and among the parties, it was
recognized that the solution to the dispute between the Lehnertz Family LLC and the
City is the need for Sound Transit to build the second general public parking :structure
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Resoltition No. 5023
January 6, 2014
Page 2 of 3
within the Downtown Aubum area, consistent with what Sound Transit has promised
and represented as its intention.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. That the Mayor and City Clerk are hereby authorized to execute a.
Release and Settlement Agreement between the City and the Lehnertz Family LLC,
which ag�eemerit shall be in substantial conformity with the agreement attached hereto
as Exhibit A and incorporated herein by this reference..
Section 2. That the Mayor is authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Section 3. That this Resolution shall take effect and be in full force upon
passage and signatures hereon.
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Dated and Signed this b� day of , 2014.
CITY OF AUBURN
�
ANCY B K , MA O '
ATfEST:
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Danielle E. Daskam, City Clerk
APPR VED A TO FORM:
Danie . Heid, Attorney
Resolution No. 5023
January 6, 2014
Page 3 of 3
RELEASE AND SETTLEMENT AGREEMENT
THIS AGREEMENT is entered into this ��day of 20� by and
between David Allen Davis, individually and for and on behalf of e Lehne Family LLC, of which he is
tlie managing partner, hereinafter collectively referred to as "LEHNERTZ," and the Ciry of Auburn,
VNashington,a municipal corporation, hereinafter referred to as"CIT'."
WITNESSETH,
WHEREAS, 6etween the years 2002 and 2004, LEHNERTZ, through its managing partner, David
Allen Davis, entered into agreements with the City of Auburn, Washington, a municipal corporation, ,
hereinafter referred to as CIN, related to Local Improvement District (LID) Number 250, including anllD
Preformatfon and Guaranty Agreement with the City of Auburn, Washington, wherein LEHNERTZ agreed
to pay tothe City of Aubumannual installment payments toward the repayment of what is known astlD
Number 250 for reimbursing the City for the cost of construction for 85 parking stalls in the parking
garage now known as the Auburn —Sound Transit Garage; and
WHEREAS, the basis of the LID Agreements was that the construction and use of a commercial
building tiy LEHNERIZ in downtown Auburn — at 102 West Main Street, Auburn, Washington—and its
intended uses would require the provision of eighty-five(85)parking spaces for use by its patrons;and
WHEREAS, the parking space requirement could be provided either by (1) on-site parking
facillties, (2) off-site private parking spaces or (3) contribution to public parking spaces, such as through
an LID; and
WHEREAS, because LEHNERTZ did not have space available to provide on-site parking or off-site
parking, the option selected to meet the. parking spaces necessary for constructing the LEHNERTZ
building was a contribution to public parking spaces through an LID—LID No.250;and
WHEREAS, subsequent to the construction of the LEHNERR building, when LEHNERTZ realized
that notwithstanding the LID contributions to public parking that there was no assurance that the public
parking spares for which the LID payments were made would always be availa6le for LEHNERTZ and the
employees and customers of LEHNERTZ, LEHNERTZ filed a claim against the CITY based on an
expectation of the ability to utilize parking spaces;and
WHEREAS, in settlement of the initial LEHNERTZ claim, the CITY paid two hundred thousand and
no/100 dollars($200,000.00)to LEHNERTZ,and LEHNERTZ and the CIIY agreed that the CITY had control
of the parking spaces, which settlement was reflected in a Release and Settlement Agreement executed
by the parties on November 7, 2007,and approved by the Auburn City Council in Resolution No. 4262;
and
WHEREAS, subsequent thereto, the CITY transferred and conveyed to Central Puget Sound
Regional Transit Authority [Sound Transit] control of and responsibility for the 85 parking spaces with
the proviso that they remain available for public parking;and
WHEREAS, although these parking spaces were and are available for public parking, because of
an increasing Sound Transit commuter need, the parking spaces have consistently been utilized by
RELEASE AND SETTLEMENTAGREEMENT
Page 1
" commuters who occupy them between the hours of 6:30 am to 5:30 pm, leaving them essentially
unavailable fonother pubiic parking uses during thatSime; and
WHEREAS, not4uithstanding the earlier Settlement Agreement between the parties
acknowledging that the CITY had exclusive control of the 85 parking spaces, LEHNERTZ filed another
claim against the CITY, 'claiming that the transfer of the parking spaces to Sound Transit essentially
eliminated their use and availa6ility for public parking between the hours of 6:30 am to 530 pm, and
based on this second claim, LEHNERTZ filed a lawsuit against the CITY in the King County Superior Court,
under Cause Number 13-2-03852-8 KNT; and
WHEREAS, in light of discussions between and among the parties, it was recognized that the
solution to the dispute between LEHNERTZ and the CITY is the need for Sound Transit to build the.
second generel public parking structure within the Downtown Auburn area, consistent with what Sound
Trensit has promised and represented as its intention.
Now Therefore, it is hereby AGREED as follows:
That for and in consideration of the payment of twenry-five thousand and no/100 dollars
($25,000.00)to be paid to LEHNERTZ, LEHNERTZ shall:
:1. Dismiss its lawsuit against the CITY in the King County Superior Court, under Cause
Numtier 13-2-03852-5 KNT, with prejudice and with each party to pay its own costs; and
2. Work with the CITY to promote the construction of a second generel public parking
strudure within the Downtown Auburn area.
It is FURTHER AGREED as follows:
This settlement extinguished any and all pending, potential and possibie.claims by and from
LEHNERTZ and its heirs, executors, administrators, successors and assigns, against the City related, in
any way, to the Sound Transit Garege, and to the City of Auburn Local Improvement District Number
250, and parking spaces provided thereby.
Under this Settlement Agreement, LEHNERTZ does further hereby release, acquit and forever
discharge the City of Auburn and its officers, agents, servants, successors, heirs, executors,
administrators and all other persons, firms, corporetions, associations or partnerships of and from any
and all claims, actions, expenses and compensation whatsoever under state or federal law, which
LEHNERTZ may now have or which may hereafter accrue io LEHNERTZ on account of or in any way
growing out of any and all known and unknown, foreseen and unforeseen damages and the
consequences thereof resulting or to result from the allocetion, control or use of parking spaces at the
Aubum-5ound Transit Garage related to the City of Aubum Local Improvement District Number 250.
That by signing this Release and Settlement Agreement, that the payment of the consideration
therefore: (I)'does not constitute an admission of any liability 6y the City of Auburn, and, in fact,the City
disputes the claim and denies liability; (2) includesfull and finaCsettlement of all claims, both"present
and future, arising from Local Improvement District No. 250 and the language.of the LID Preformation
and Guarenry Agreement and applies to any and all past and future damages which might be claimed by
RELEASE AND SETTLEMENT AGREEMENT
Page 2
LEHNERTZ as related thereto; and (3) LEHNERTZ agrees to pay from these settlement proceeds any '
person, wrporation,or entity who has a lawful lien or subrogation claim againstthese funds:
LEHNERTZ doesfurtheragree, as consideration of the payment in the amount above, to defend,
indemnify, and hold harmless the City of Auburn from any such liens, subrogation claims; or other such
claims of any person or entity claiming any interesi in the settlement funds being paid pursuant to this
Agreement and furthe�agrees,as consideration of the payment in the amount above,that the successor
of the.Ciry:of Auburn, to wit:;Sound Transit, shall have total and exclusive use of the parking spaces as
proyided for in the Locaf Improveme�t District Na 250.
It is further understood and agreed by the parties that this Settlement Agreement does not
create anynew parking provision condition which would require the additional expenditure of funds by
LEHNERIZ in order to continue to occupy and use itsadjacent commercial building.
It is further agreed that all other terms and conditions of the Local Improvement Dis[rid
formation and guarentee agreement as approved by City of Auburn Resolution Numbec 3701 and the
Release and SettlementAgreement executed by the parties on November7; 2007, and approved by the
Aubum City Gouncil in Resolution No. 4262, which are not inconsistent with the terms of this Release
andSettlement Agreement shali be in full force and effect and recognized asauch by the parties hereto.
It is further agreed that the parties hereto shail take all necessary steps and actions needed and
appropriate to have the.lawsuit filed by LEHNERTZ against the CITY under the King County Superior
{ourt Cause Number 13-2-03852-8 KNT, dismissed with prejudice and with each party to pay its own
cosu.:
It is furtFier agreed that this Settlement Agreement shall be subject to concurrence and
acceptance by the Aubum City Council.
The undersigned agree that no promise, inducement or agreement not herein expressed has
beert:made to either of the undersigned, and that this Release contains the entire agreement between
the parties hereto, and that the terms of this Release are contractualand noYmere recital.
This Settlement Agreement shall be construed and interpreted according to the laws of the
State of.Washington.
THE CITY OF AUBURN DOES NOT LEGALLY REPRESENT THE UNDERSIGNED. THE UNDERSIGNED
UNDERSTANDS ANY QUESTIONS REGARDING THIS RELEASE SHOULD BE DIRECTED TO NIS OR HER OWN
PERSONAL ATTORNEY PRIOR TO SIGNING.
TIiE UNDERSIGNED HAS READ THE FOREGOING RELEASE AND FULLY UNDERSTANDS IT.
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Signed, 5ealed and elivered this�day of _, 20�.
c
DAVID ALLEN DAVIS,Managing Partner, '
LEHNERTZ FAMILY LLC
RELEASE AND SETTLEMENT AGREEMENT
Page 3
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• State of Washington )
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County of King )
I certify that I know orhave satisfactory evidence that David Allen Davis is the person who appeared
before me and said person acknowledged that he/she signed this instrument and acknowledged it to be
his/her free and voluntary act and the free and voluntary ad of the Lehnertz Family LLC, of wfifch he•is:,,,,
the managing partner and on whose.behalf',he is acting the uses and rposes mentiopE��i�¢p��o�..,
instrument. �
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Signed,:5ealed and Delivered this�"'� day of .GL� _ 20o-b� ,
9= Mayor, City uburn
State of Washington �
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County of King )
I certify that I know or have satisfactory evidence that •'v�N�.' ��-S is the person who
appeared before me and said person acknowledged that he/she signed this instrument as the Mayor of
the City of Auburn, Washington, and acknowledged it to 6e the freeand 4oluntary act of his/her office
for the uses and purposes as mentioned in the instrument.
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RELEASE AND SETTLEMENTAGREEMENT
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