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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 *0y 1?8 city ��Ks eURry 0p" 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 II i f� ATTACHMENT 2 PA Ki iIi e 1 1' e, ,e e� e` Ki iIi IA e, e� i 1 I II� II� iii i�) 1 )° PIµ Sl`gOTIEADO PMIIe16 I PDX_wni. Inc. lOT ADgIX1N I C I x.r�ra wmnc,cr�w wnvmu rnw �c��ros/ ��®