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Home My WebLink AboutITEM VIII-B-7AUBURN WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 4342 Date: April 15, 2008 Department: Planning, Attachments: Resolution No. 4342 Budget Impact: N/A Building, and Community Administrative Recommendation: City Council introduce and approve Resolution No. 4342. Background Summary: Resolution No. 4342 authorizes the Mayor to execute a letter of intent with Alpert Capital, LLLP. The letter of intent is for a 90 day period of time with Alpert International, LLLP to develop agreements for the development of the property or for strategies on how the property could be developed. The referenced property is for certain city owned parcels within downtown Auburn. A3.13.4 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ? Arts Commission COUNCIL COMMITTEES: ? Building ? M&O ? Airport E Finance ? Cemetery ? Mayor ? Hearing Examiner E Municipal Serv. ? Finance ? Parks ? Human Services E Planning & CD ? Fire E Planning ? Park Board ? Public Works E Legal ? Police ? Planning Comm. E Other DT Redev. ? Public Works ? Human Resources ? Information Services Action: Committee Approval: ?Yes ?No Council Approval: ?Yes ?No Call for Public Hearing Referred to Until Tabled Until Councilmember: Norman Staff: Baker Meeting Date: April 21, 2008 Item Number: VIII.B.7 AUBURN * MORtE THAN YOU IMAGINED if RESOLUTION NO.4 3 4 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A LETTER OF INTENT WITH ALPERT INTERNATIONAL, LLLP FOR DEVELOPMENT OF DOWNTOWN PROPERTIES WHEREAS, the City of Auburn owns certain pieces of real property within the downtown area which the City desires to see developed; and WHEREAS, pursuant to the City's downtown revitalization plan, the City made a request for proposals for interested developers; and WHEREAS, one of the developers, Alpert International, LLLP, submitted a response to the request for proposals and in this regard, the City is interested in entering into a Letter of Intent for a 90 day period of time with Alpert International, LLLP to develop agreements for the development of the property or for strategies on how the property could be developed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Mayor is authorized to execute the Letter of Intent, in substantial conformity with the agreement, a copy of which is attached hereto, marked as Exhibit A and incorporated herein by this reference. Section 2. The Mayor is hereby authorized to implement such. administrative procedures as may be necessary to carry out the directives of this legislation. Resolution No. 4342 April 9, 2008 Page 1 of 2 Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this day of , 2008. CITY OF AUBURN PETER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk TO Daniel B. He-N7-City Resolution No. 4342 April 9, 2008 Page 2 of 2 ?.xp . AlpertInternational, LLLP 7525 SE 20 St., Suite 330 Mercer Island, WA 98040 Seller: City of Auburn Purchaser: Alpert International LLLP Property: The city owns real property located in the city of Auburn, King County, Washington, described as King County Tax Parcel Numbers: 7815700115, 7815700135, 7815700250, 7815700285, 7815700290, 7815700295, 7815700300, 7815700305, 7815700310, 7815700325, 7815700326, and 7815700327 consisting of 94,510 square feet, herein referred to as the "City Property". Outparcels: The Parties acknowledge that in order for the Project, as defined below, to become feasible certain additional parcels to be identified in a Master Development Agreement or MDA, as defined below, and currently owned by multiple third parties may need to be incorporated. These properties lie in close proximity to the City Property and are identified herein as the "Outparcels". Purchaser agrees to take the lead in all negotiations for acquisition of rights pertaining to the Outparcels as desired by Seller. Currently identified Outparcels as shown on preliminary Project maps include King County Tax Parcel Numbers: 7815700005, 7815700015, 7815700020, 7815700030, 7815700047, 7815700070, 7815700075, 7815700085, 7815700095, 7815700110, 7815700120, 7815700225, 7815700240, 7815700265, 7815700280, 7815700290, 7815700295, 7815700310, and 7815700327. Associated Parcels: In addition to the City Property and the Outparcels, the parties may wish to associate other nearby parcels with the Project (the "Associated Parcels"). Purchaser agrees to take the lead in all negotiations for acquisition of rights pertaining to the Associated Parcels as desired by Seller. Currently identified Associated Parcels include King County Tax Parcel Numbers: 0019000020, 0019000025, 0019000050, 0019000055, 0019000090, 0019000091, 0019000092, 001900100, 0019000105, 0019000110, 0019000120, 0019000125, 0492000605, 0492000610, 7331400135, 7331400235, 7331400237, 7331400239, 7331400240, 7815700305, 7331400315, 7331400345, 7331400380, 7331400400, 7331400401, 7331400405, 7331400415, 7331400427, 7331400447, 7815700340, 7815700360, 7815700370, 7815700380, 7815700390, 7815700410, 7815700420, 7816200005, 7816200010, and 7816200015. Letter of Intent City of Auburn - Alpert International Page 1 of 3 Together the City Property, Outparcels and Associated Parcels shall be referred to as the "Real Property". Purchase Price: The purchase price for the City Property, along with any city right-of- way to be vacated and rights pertaining to any city-owned Associated Parcels ultimately included in the Project, shall be equitably negotiated in good faith by the parties during the Engagement Period, as defined below. The Parties further agree that in order to ensure a purchase price for the City Property and any other city-owned rights that reflects equitable value, one or more independent appraisers, acceptable to Seller on a commercially reasonable basis, may be retained by the parties to determine such value. Seller recently purchased the subject property and the purchase price shall serve as the starting point for negotiations between the Parties for the purchase price of the City Property. The purchase price for city- owned Associated Property, along with other valuable city rights to be acquired by Purchaser (such as rights-of-way) shall be equitably negotiated by the parties in a manner similar to the City Property and may be offset by Purchaser's incorporation of public spaces within the Project. Engagement Period: Upon execution of this Letter of Intent, the Parties agree to engage in exclusive, good faith negotiations for a period of ninety (90) days (the "Engagement Period") or extended 11'a-reed to by both parties, with the intent to enter into the MDA, in the form of a public-private partnership or other such agreement providing for the redevelopment of the Real Property (the "Project"). The Project will be known as Auburn Junction or by another mutually acceptable name. During the Engagement Period the Parties will agree on all substantive provisions of the MDA, such as defining the Project's scope (including physical boundaries), definition and mutually-agreeable goals; acquisition of City Property; acquisition method for the Outparcels; acquisition method for the Associated Parcels; governmental financial participation to ensure viability of the Project; and other key provisions, including earnest money, entitlements, timing of purchases and closing guidelines. Project Characteristics: The Project shall be an environmentally conscious, master planned mixed use development in an urban village setting to include a combination of retail, commercial, residential, and public uses. Additionally, the Project shall provide aesthetic appeal, ambience, and connectivity to Main Street, brick fagade to complement the nearby transit station and parking facility, and shall be consistent with the design elements and standards provided in Seller's downtown plan. Letter of Intent City of Auburn - Alpert International Page 2 of 3 City Participation: It is anticipated that the Parties will enter into a definitive agreement with respect to all aspects of the Project (the "Master Development Agreement" or "MDA") during the Engagement Period. The MDA will incorporate provisions for certain government financing and possibly the creation of a Public Facilities District so as to enhance public use infrastructure in the downtown area for the benefit of the Downtown Revitalization Catalyst Area and the entire Auburn community. Procedures for mutually pursuing financial incentives and participations by other, third party governmental entities for the further enhancement of Auburn's downtown revitalization may also be agreed upon during the Engagement Period. Closing: Closing on individual parcels, as agreed to by the Parties, shall occur in a manner consistent with the phasing of the Project. Initial redevelopment is intended to occur in the Project's northwest quadrant (i.e. along Main Street, across from City Hall). Further details of the phasing and closing processes shall be agreed upon during the Engagement Period. This Letter of Intent is not intended to create, nor does either party presently have any binding legal obligation, except for the Engagement Period section above. It is the Parties' mutual intention immediately to proceed in good faith in the negotiation of a definitive Master Development Agreement incorporating the preceding key terms and conditions. If this is acceptable to you, please sign in the place indicated below and return one fully-executed letter to me. Best regards, Alpert International, LLLP By: The Alpert Group Inc. Its: General Partner Spencer . Alpert, President CITY: Accepted this day of ,2008: City of Auburn By: Name: Title: Letter of Intent City of Auburn - Alpert International Page 3 of 3