HomeMy WebLinkAboutITEM VIII-B-6CITY OF
WASHINGTON
AGENDA BILL APPROVAL FORM
Agenda Subject: Resolution No. 4397 Date: September 2, 2008
Department: Attachments: Budget Impact:
Human Resources Resolution No. 4397
Administrative Recommendation:
City Council adopt Resolution No. 4397.
Background Summary:
A resolution authorizing the Mayor and City Clerk to execute a purchase and sale agreement between
the City of Auburn and James and Rebecca Ferguson and Teresa Gillis for real property.
S0902-4
A3.13.4
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
? Arts Commission COUNCIL COMMITTEES: ? Building ? M&O
? Airport ® Finance ? Cemetery ? Mayor
? Hearing Examiner ? Municipal Serv. ? Finance ? Parks
? Human Services ? Planning & CD ? Fire ? Planning
? Park Board ?Public Works ? Legal ? Police
? Planning Comm. ® Other ? 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: Backus Staff: Heineman
Meeting Date: September 2, 2008 Item Number: VI11.6.6
AUBURN *MOPE THAN YOU IMAGINED
RESOLUTION NO. 4397
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A PURCHASE AND SALE
AGREEMENT BETWEEN THE CITY OF AUBURN AND JAMES
AND REBECCA FERGUSON AND TERESA GILLIS FOR REAL
PROPERTY
WHEREAS, the City of Auburn owns a certain piece of real property
located at 4 Pike Street Southeast in Auburn, Washington, which property the
City desires to sell; and
WHEREAS, James and Rebecca Ferguson and Teresa Gillis desire to
purchase this property at a cost that is acceptable to the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows:
Section 1. The Mayor of the City of Auburn and the Auburn City Clerk
are hereby authorized to execute a Purchase and Sale Agreement between the
City of Auburn and James and Rebecca Ferguson and Teresa Gillis for real
property located at 4 Pike Street Southeast in Auburn, Washington, which
agreement shall be in substantial conformity with the Agreement a copy of
which is attached hereto, marked as Exhibit "A" and incorporated herein by this
reference.
Resolution No. 4397
August 25, 2008
Page 1 of 2
Section 2. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of
this legislation.
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
AP?R?V D A?R
I
Daniel B. Heid, ity Attorney
Resolution No. 4397
August 25, 2008
Page 2 of 2
EXHIBIT A
REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF AUBURN AND James and Rebecca Ferguson and Teresa
Gillis
THIS AGREEMENT is made and entered into by and between the
sellers, CITY OF AUBURN (the "City"), and James and Rebecca Ferguson and
Teresa Gillis (Ferguson/Gillis).
WITNESSETH:
Whereas, the City owns a certain piece of real property that was acquired by the
City through condemnation under Chapter 35.80A of the Revised Code of Washington
(RCW); and
Whereas, pursuant to RCW 35.80A.020 cities may sell or otherwise transfer real
property acquired pursuant to RCW Chapter 35.80A for residential, recreational,
commercial, industrial, or other uses or for public use, subject to such covenants,
conditions, and restrictions, including covenants running with the land, as the city
deems to be necessary or desirable to rehabilitate and preserve the dwelling, building,
or structure in a habitable condition; and
Whereas, RCW 35.80A.020 provides that the purchasers and their successors
and assigns shall be obligated to comply with such other requirements as the city may
determine to be in the public interest, including the obligation to begin, within a
reasonable time, any improvements on such property required to make the dwelling,
building, or structure habitable;
NOW, THEREFORE, in consideration of the following terms, conditions and
covenants and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, IT IS AGREED by the parties as follows:
1. TRANSFER OF PROPERTY. The City shall convey and transfer to
Ferguson/Gillis and the Ferguson's/Gillis' shall acquire and take from the City, the
property located at 4 Pike Street Southeast, Auburn, WA 98002, described as follows:
Lot 2, Block 1 John Dailidenas First Addition to the City of
Auburn According to the Plat Thereof Recorded in Volume 42
of Plats Page 21, in King County, Washington.
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King County Tax parcel Number 1887500010.
2. EARNEST MONEY DEPOSIT. The Buyer agrees to pay herewith one
thousand US Dollars ($1,000.00) as earnest money, in the form of cashiers check to be
deposited with Chicago Title Company, 32001 32nd Ave S # 400, Federal Way, WA
98001, as part payment on the purchase price, payable to the City upon closing, subject
to the conditions set forth herein.
3. PURCHASE PRICE. The purchase price for the Property is one hundred and
twenty-five thousand US Dollars ($125,000.00). The parties acknowledge that the
purchase.price together with the conditions in subparagraph 3(A), below, represents the
fair market value of the Property. The agreed upon amount is payable by cashiers
check at closing.
A. This purchase and sale shall be expressly conditioned upon the mutual
execution of a promissory agreement secured by a deed of trust and warranty deed
containing the following obligations, covenants, restrictions and requirement:
1. Within sixty (60) days of closing the buyer will replace the roof, trim
board and windows, pressure wash the entire exterior (house, driveway, and
walkway), landscape the yard and remove or replace mid level fence around the
property (subject to requirements and restrictions of the Auburn City Code).
4. CLOSING. The closing date and place shall be mutually agreed upon by the
parties. Both parties shall be responsible and entitled to have all closing documents
reviewed by their own counsel or agent prior to closing.
5. CLOSING DOCUMENTS. At the closing, the City shall produce and execute a
Warranty Deed (The "Deed"), duly executed and acknowledged in a recordable form,
conveying to the Buyer, marketable title to the Property free and clear of all liens,
assessments, deeds of trust, mortgages, or encumbrances except those expressly
agreed to by the Cities, and all other documentation reasonably appropriate for the sale.
6. EXPENSES.
A. Expenses of the City. The City shall pay:
(i) real estate taxes prorated to the date of closing, if any;
(ii) all assessments, liens, mortgages, deeds of trust or other
encumbrances (i.e. real estate excise tax), if any;
(iii) the City's attorney fees; and
(iv) all other expenses incurred by the City which relate to the Property;
(v) title insurance premiums.
B. Expenses of the Buyer. The Buyer shall pay:
(i) all recording fees;
(ii) their attorney fees;
(iii) real estate taxes due after the closing date, if any.
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7. POSSESSION. The City shall deliver possession of the Property to the Buyer
on the date of closing.
8. TIME. Time is of the essence of this Agreement.
9. TITLE EXAMINATION. This Agreement is subject to and conditioned on the
City providing to the Buyer clear title to the real property, as shown on a Policy of Title
Insurance covering the purchase of the Property in the amount of the cash purchase
price, provided and paid for by the City. In the event that the City is unable to cure any
title encumbrances which are unacceptable to the Buyer, the Buyer may at Buyer's
option: (1) terminate this agreement by written notice, whereupon no party shall have
any further liability under this agreement; or (2) postpone the date of closing for up to
sixty (60) days, during which time the City shall use all reasonable efforts and expend
reasonable sums as may be necessary to cure the objections of the Buyer. If the
objections to title are not cured on or before the closing date, as postponed, the Buyer
may terminate this agreement or waive the objections to title.
10. HAZARDOUS WASTE. To the best of the City's knowledge the property is
not in violation of any federal, state or local law, ordinance, or regulation relating to the
environmental conditions on, under, or about the property, including but not limited to,
soil and surface and ground water conditions, and that during the time in which the City
owned the property, neither the City nor, to the best of the City's knowledge, any third
party has used, generated, stored, or disposed of, on, under, or about the property or
transported to or from the property any hazardous waste, toxic substances, or related
materials (the "Hazardous Materials"). For the purposes of this paragraph, Hazardous
Materials shall include, but is not limited to, substances defined as "Hazardous
Substances," "Hazardous Materials," "Hazardous Waste," "Toxic Substances," in the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended, and RCW Title 7 and the regulations promulgated pursuant to such laws.
11. REPRESENTATIONS AND WARRANTIES. The City makes no
representations or warranties, express or implied, concerning the condition of the
Parcel. The Buyer is familiar with the Parcel and expressly agrees to accept it "AS IS,
WITH ALL FAULTS, EASEMENTS, and RESTRICTIONS." The Buyer shall be
responsible for demolition of structures, relocation of utilities, removal of hazardous
materials, or any other cost associated with ownership or development of the Parcels.
However; if prior to the closing date the Buyer discovers that the property contains any
Hazardous Waste, of which it has not been previously advised, the Buyer may terminate
this Agreement, and the Earnest Money shall be returned to the Buyer.
12. NOTICES. Any notices required or permitted to be given shall be in writing
and delivered either in person or by certified mail, return receipt requested, postage pre-
paid, addressed as follows or such other address as may be designated by either party:
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City
City of Auburn
Human Resources Department
25 W. Main St.
Auburn WA 98001
Buyer
James and Rebecca Ferguson
931 16th Street NE
Auburn, WA 98002
Teresa Gillis
3511 197th Ave Ct. E
Auburn, WA 98002
Any notice given pursuant to this Agreement shall be deemed effective the day it
is personally delivered or three (3) business days after the date it is deposited in the
United States mails.
13. ENTIRE AGREEMENT/MODIFICATION. This written Agreement constitutes
the entire and complete Agreement between the parties hereto and supersedes any
prior oral or written agreements between the Parties with respect to the Property. It is
expressly agreed that there are no verbal understandings or agreements, which in any
way change the terms, covenants, and conditions herein set forth. No modifications of
this Agreement and waiver of any of its terms and conditions shall be effective unless in
writing and duly executed by the parties hereto.
14. BINDING EFFECT. All covenants, agreements, warranties and provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, executors, administrators, personal representatives, successors
and assigns.
15. CITY COUNCIL APPROVALS. The Buyer acknowledges that this
Agreement does not bind the City until (1) the Mayor of the City of Auburn, executes the
Agreement and (2) the Auburn City Council approves the Agreement.
16. DISCLOSURE STATEMENT. The City shall, within five (5) days of the
Buyer's accepting this Agreement, deliver to the Buyer a completed, signed and dated
Real Property Transfer Disclosure Statement substantially in the form set forth in RCW
64.06.020, if applicable. The Buyer shall within three business days, or as otherwise
agreed to, after receipt of the Real Property Transfer Disclosure Statement have the
right to (1) approve and accept the Real Property Disclosure Statement; or (2) rescind
this Agreement. If the Buyer elects to rescind the Agreement, the Buyer will deliver
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written notice of rescission to the City within the above three (3) business day period, or
as otherwise agreed. Upon delivery of a rescission statement, the Buyer shall be
entitled to immediate return of all deposits and other consideration paid to the City. If
the Buyer does not deliver a written rescission notice, the Real Property Transfer
Disclosure Statement will be deemed approved.
17. DEFAULT AND ATTORNEY'S FEES. In the event that any party fails,
without legal excuse, to perform any obligation under this Agreement, then the other
parties may, at their option, bring suit against the party failing to perform for the other
parties' actual damages, or pursue any other rights or remedies available at law or in
equity.
If one or more parties institute suit concerning this Agreement, the prevailing
party or parties shall be entitled to court costs and reasonable attorney's fees. In the
event of trial, the court shall fix the amount of the attorney's fees. Venue of any suit
shall be in King County, and this Agreement is to be governed by the laws of the State
of Washington.
18. LEGAL RIGHTS. EACH OF THE PARTIES SHALL SUBMIT THIS
AGREEMENT TO THEIR ATTORNEYS AND TAX SPECIALISTS FOR THEIR REVIEW
AND APPROVAL PRIOR TO SIGNING THIS AGREEMENT. NO REPRESENTATIONS
OR WARRANTIES ARE MADE BY ONE PARTY TO THE OTHER PARTY AS TO THE
LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS
AGREEMENT, THE TRANSACTION DESCRIBED HEREIN, OR ANY ATTACHMENTS
TO THIS AGREEMENT.
19. TIME LIMIT FOR ACCEPTANCE. The City offers to sell the property on the
above terms and conditions. The Buyer has until midnight of August 22, 2008 to accept
this offer (if not filled in, the day following the City's signature date below.) Acceptance
is not effective until a signed copy hereof along with any earnest money is actually
received by the office of Closing Agent. If this offer is not so accepted, it shall lapse.
20. ASSIGNMENT. No party to this Agreement shall assign any right or
obligation hereunder in whole or in part, without the prior written consent of the other
parties hereto.
21. AMENDMENT. MODIFICATION OR WAIVER. No amendment, modification
or waiver of any condition, provision or term of this Agreement shall be valid or of any
effect unless made in writing, signed by the party or parties to be bound, or such party's
or parties' duly authorized representative(s) and specifying with particularity the nature
and extent of such amendment, modification or waiver. Any waiver by any party of any
default of another party shall not effect or impair any right arising from any subsequent
default.
Nothing herein shall limit the remedies or rights of the parties hereto under and
pursuant to this Agreement.
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22. CAPTIONS. HEADINGS AND TITLES. All captions, headings or titles in the
paragraphs or sections of this Agreement are inserted for convenience of reference only
and shall not constitute a part of this Agreement or act as a limitation of the scope of the
particular paragraph or sections to which they apply. As used herein, where
appropriate, the singular shall include the plural and vice versa and masculine, feminine
and neuter expressions shall be interchangeable. Interpretation or construction of this
Agreement shall not be affected by any determination as to who is the drafter of this
Agreement, this Agreement having been drafted by mutual agreement of the parties.
23. SEVERABLE PROVISIONS. Each provision of this Agreement is intended
to be severable. If any provision hereof is illegal or invalid for any reason whatsoever,
such illegality or invalidity shall not affect the validity of the remainder of this Agreement.
24. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be one and the same Agreement and shall become
effective when one or more counterparts have been signed by each of the parties and
delivered to the other party.
25. SIGNATURES:
This Real Estate Purchase And Sale Agreement signed in duplicate original effective
as of the date first above written.
CITY OF AUBURN
Peter B. Lewis, Mayor
BUYER
By:
James Ferguson
Attest:
Danielle Daskam, City Clerk
Ap ove KF
ei r ubu torney
ACCEPTED this day of
By:
Rebecca Ferguson
By:
Teresa Gillis
6
, 2008