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HomeMy WebLinkAbout4375RESOLUTION NO. 4 3 7 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, APPROVING THE PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF AUBURN AND THE STRATFORD GROUP FOR THE PURCHASE/SALE OF CERTAIN PARCELS OF PROPERTY LOCATED IN THE DOWNTOWN AREA OF AUBURN WHEREAS, the City of Auburn is the owner of certain parcels of property located in the downtown Auburn area; and WHEREAS, the Stratford Group, is, also, the owner of certain parcels of property located in the downtown Auburn area; and WHEREAS, in order to promote the development of properties within the downtown area, it would be advantageous for the City to transfer certain parcels to the ownership to the Stratford Group, and for the Stratford Group to, in turn, transfer certain parcels of property to the City; and WHEREAS, the proposed reciprocal transfers of parcels from one to the other would create a more favorable environment for development by the Stratford Group and by the City in that their respective parcels would be more closely contiguous and development would be more easily able to be accomplished. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Resolution No. 4375 June 25, 2008 Page 1 of 2 Section 1. That the City Council approves the agreement for the purchase and sale of real property together with its addendum number 1 in a form in substantial conformity with the attached Exhibits "A," "B" and "C," 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. Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this day of NtA/ ?4 , 2008. CIT OF PETER B`'LEWIS MAYOR ATTEST: Da 'elle E. Daskam, City Clerk APPRaVE1)-AS TO FORM/-I B. H66, Resolution No. 4375 June 25, 2008 Page 2 of 2 REAL ESTATE PURCHASE AND SALE AGREEMENT This REAL ESTATE PURCHASE AND SALE AGREEMENT (this "Agreement") is entered into as of the day o Z , 2008, by and the CITY OF AUBURN, a Washington municipal corporation as b th a Seller and Purchaser (hereinafter the "CITY) and between THE STRATFORD COMPANY, a Washington limited liability company, as both a Seller and Purchaser (hereinafter the "THE STRATFORD COMPANY LLC"). RECITALS A. The CITY is the owner of certain real properties and all improvements thereon located in the City of Auburn, County of King, Washington, which are legally described on Exhibit A attached hereto, and depicted for illustrative purposes only on Exhibit C attached hereto. B. THE STRATFORD COMPANY LLC is the owner of certain real properties and all improvements thereon located in the City of Auburn, County of King, Washington, which are legally described on Exhibit B attached hereto, and depicted for illustrative purposes only on Exhibit C attached hereto. C. THE STRATFORD COMPANY LLC and the CITY desire to exchange land parcels from one another, on the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, CITY and THE STRATFORD COMPANY LLC hereby agree as follows: 1. CERTAIN DEFINED TERMS. For purposes of this Agreement, the terms set forth below shall have the meaning assigned to them: 1.1 "Closing" or "Close of Escrow" means the recordation of the Deed in the Official Records and receipt of the Deed. 1.2 "Closing Date" means any mutually agreeable date on or before August 15, 2008. 1.3 "CITY Parcels" means the two CITY parcels totaling approximately 21,142 square feet located in King County offered for sale to THE STRATFORD COMPANY LLC as identified in Exhibit A which is attached hereto. 1.4 "Deed" means a statutory warranty deed. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 1 CADocuments and Settings\Dheid\Local Settings\Temporary Internet Fi1es\0LK4D\129639.doc 1.5 "Escrow" means the escrow opened with Escrow Agent for the consummation of the transaction described in this Agreement. 1.6 "Escrow Agent" means Chicago Title Insurance Company (Phone: (253) 945- 9140). 1.7 "Official Records" means the official real property records of King County, Washington. 1.8 "Opening of Escrow" means the date a fully executed copy of this Agreement is deposited with Escrow Agent. 1.9 "Purchase Price" has the meaning as set forth in Section 3. 1.10 "Parties" includes collectively the CITY and THE STRATFORD COMPANY LLC. 1.11 "Project" is the demolition of existing buildings, new building construction, site development improvements (e.g. sidewalks, grading, utilities, etc.), and all associated permits required by the City. 1.12 "THE STRATFORD COMPANY LLC Parcels" means the two THE STRATFORD COMPANY LLC parcels totaling approximately 30,000 square feet located in King County offered for sale to the City as identified in Exhibit B which is attached hereto. 1.13 Title Company" means Chicago Title Company. 1.14 "Title Policy" means an ALTA (1970 Form B) extended coverage owner's policy of title insurance issued by the Title Company to the purchaser with coverage in the amount of purchase price, showing title to the Parcels vested in the seller's subject only to the Permitted Exceptions. 2. PURCHASE AND SALE. 2.1 The CITY agrees to sell to THE STRATFORD COMPANY LLC, and THE STRATFORD COMPANY LLC agrees to purchase from CITY, the CITY Parcels upon the terms and conditions set forth in this Agreement. 2.2 THE STRATFORD COMPANY LLC agrees to sell to the CITY, and the CITY agrees to purchase from THE STRATFORD COMPANY LLC, THE STRATFORD COMPANY LLC Parcels upon the terms and conditions set forth in this Agreement. 3. PURCHASE PRICE. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 2 \\Auburn 15\ProLawDocs\275-037\SK\ 129639.doc 3.1 The total cash purchase price for the CITY'S Parcels ( "THE STRATFORD COMPANY LLC'S Purchase Price") shall be One Million Ninety Two Thousand Three Hundred Five Dollars and Noll 00's ($1,092,305.00). 3.2 The total cash purchase price for THE STRATFORD COMPANY LLC' S Parcels (the "CITY'S Purchase Price") shall be One Million Five Hundred and Ninety Nine Thousand Nine Hundred Dollars and Noll 00's ($1,599,900.00). 3.3 The CITY shall pay Five Hundred Seven Thousand Five Hundred Ninety Five Dollars and No1100's ($507,595.00) to the STRATFORD COMPANY LLC in cash at Closing, which is the net difference between the purchase prices set forth in Sections 3.1 and 3.2. 4. EARNEST MONEY DEPOSIT. 4.1 On/execution of this Agreement, THE STRATFORD COMPANY LLC shall deposit with Escrow Agent One Thousand Dollars and N61100's Dollars ($1,000.00) in cash (the "Deposit"), which shall be held by Escrow Agent as an earnest money deposit hereunder. The Deposit shall be held in Escrow and applied or disposed of by Escrow Agent as provided herein. Escrow Agent shall place the Deposit in an interest-bearing account approved by THE STRATFORD COMPANY LLC and the CITY and all interest earned thereon shall be added to and become a part of the Deposit. 4.2 On execution of this Agreement, the CITY shall deposit with Escrow Agent One Thousand Dollars and No1100's Dollars ($1,000.00) in cash (the "Deposit"), which shall be held by Escrow Agent as an earnest money deposit hereunder. The Deposit shall be held in Escrow and applied or disposed of by Escrow Agent as provided herein. Escrow Agent shall place the Deposit in an interest-bearing account approved by the CITY and THE STRATFORD COMPANY LLC and all interest earned thereon shall be added to and become a part of the Deposit. 5. CITY'S RIGHT OF ENTRY. The CITY, and its agents and consultants, at the CITY'S sole expense and risk, may enter THE STRATFORD COMPANY LLC Parcels during the term of this Agreement at reasonable times scheduled in advance with THE STRATFORD COMPANY LLC for the purpose of the CITY'S due diligence study of the Parcels. The CITY shall (a) exercise care at all times on or about the Parcels, and (b) take precautions for the prevention of injury to persons or damage to property on or about the Parcels. The CITY shall keep the Parcels free from all mechanics', materialmen's and other liens, and all claims thereof, arising from any work or labor done, services performed, or materials and supplies furnished in connection with CITY'S actions in the exercise of its right of entry on the Parcels, and the CITY shall indemnify and defend THE STRATFORD COMPANY LLC against and hold THE STRATFORD COMPANY LLC harmless from all such liens and claims. If this transaction fails to close for any reason other than a default by THE STRATFORD COMPANY LLC hereunder, the CITY shall furnish THE STRATFORD COMPANY LLC with a copy of all such PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 3 \\Auburn 15\ProLawDocs\275-037\SK\ 129639. doc inspections, studies and surveys and shall assign or quitclaim all of the CITY'S right, title and interest in and to any permits, approvals, or permit or approval applications. 6. THE STRATFORD COMPANY LLC' S RIGHT OF ENTRY. THE STRATFORD COMPANY LLC, and its agents and consultants, at THE STRATFORD COMPANY LLC' S sole expense and risk, may enter the CITY Parcels during the term of this Agreement at reasonable times scheduled in advance with the CITY for the purpose of THE STRATFORD COMPANY LLC' S due diligence study of the Parcels. THE STRATFORD COMPANY LLC shall (a) exercise care at all times on or about the Parcels, and (b) take precautions for the prevention of injury to persons or damage to property on or about the Parcels. THE STRATFORD COMPANY LLC shall keep the Parcels free from all mechanics', materialmen's and other liens, and all claims thereof, arising from any work or labor done, services performed, or materials and supplies furnished in connection with THE STRATFORD COMPANY LLC'S actions in the exercise of its right of entry on the Parcels, and THE STRATFORD COMPANY LLC shall indemnify and defend the CITY against and hold the CITY harmless from all such liens and claims. If this transaction fails to close for any reason other than a default by the CITY hereunder, THE STRATFORD COMPANY LLC shall furnish the CITY with a copy of all such inspections, studies and surveys and shall assign or quitclaim all of THE STRATFORD COMPANY LLC'S right, title and interest in and to any permits, approvals, or permit or approval applications. 7. CLOSING. 7.1 Both the CITY'S and THE STRATFORD COMPANY LLC' S property transactions shall be closed in the office of Escrow Agent on the Closing Date. THE STRATFORD COMPANY LLC and the CITY shall deposit in Escrow with Escrow Agent all instruments, documents and monies necessary to complete the sales in accordance with this Agreement. Funds held in reserve accounts pursuant to escrow instructions shall be deemed, for purposes of this definition, as available for disbursement to the Parties. 7.2 Closing Costs. Each Party shall pay their own fees associated with the selling of their properties including all State documentary stamps (Revenue Stamps) which are required to be affixed to the instrument of conveyance, any taxes on the conveyance of real property (Real Estate Excise Tax) and recording fees shall be paid for by the selling Party. 7.2.1 Other Costs. THE STRATFORD COMPANY LLC and the CITY shall each pay its own legal fees and fees of its own consultants. All other costs and expenses shall be allocated between THE STRATFORD COMPANY LLC and the CITY in accordance with the customary practice of King County, Washington. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 4 \\Aubum 15\ProLawDocs\275-03 7\SK\ 129639. doc 7.3 Real Property Taxation. The parties acknowledge that the Parcels will be subject to real property taxation from the date of the Closing and that all Real Estate taxes for the year of the closing shall be prorated to the date of closing. 7.4 Closing Documents. 7.4.1 The CITY'S Documents. At Closing, the CITY shall deliver to Escrow Agent the following instruments and documents: 7.4.1.1 The executed and acknowledged Deeds, in a form acceptable to THE STRATFORD COMPANY LLC, conveying the CITY Parcels to THE STRATFORD COMPANY LLC; 7.4.1.2 The executed real estate excise tax affidavit to accompany the Deeds; 7.4.1.3 An executed nonforeign person affidavit in the form required under Section 1445 of the Internal Revenue Code; 7.4.1.4 The balance of the Purchase Price in accordance with Section 3.3; and 7.4.1.5 The CITY'S share of costs and expenses as determined in accordance with Section 7.2. 7.5.1 THE STRATFORD COMPANY LLC' S Documents. At Closing, THE STRATFORD COMPANY LLC shall deliver to Escrow Agent the following instruments and documents: 7.5.1.1 The executed and acknowledged Deeds, in a form acceptable to the CITY, conveying THE STRATFORD COMPANY LLC Parcels to the CITY; 7.5.1.2 The executed real estate excise tax affidavit to accompany the Deeds; 7.5.1.3 An executed nonforeign person affidavit in the form required under Section 1445 of the Internal Revenue Code; and 7.5.1.4 THE STRATFORD COMPANY LLC'S share of costs and expenses as determined in accordance with Section 7.2. 7.6 Possession. The CITY and THE STRATFORD COMPANY LLC shall be entitled to possession of the Parcels upon Closing. 8. TITLE INSURANCE. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 5 \\Auburn 15\ProLawDocs\275-03 7\SK\ 129639. doc 8.1 As soon as available after Closing, the CITY shall provide to THE STRATFORD COMPANY LLC the Title Policy, dated as of the Closing Date, subject only to the Permitted Exceptions. 8.2 As soon as available after Closing, THE STRATFORD COMPANY LLC shall provide to the CITY the Title Policy, dated as of the Closing Date, subject only to the Permitted Exceptions. 9. CONDITIONS TO CLOSING. 9.1 THE STRATFORD COMPANY LLC' S Conditions to Closing. Notwithstanding anything to the contrary set forth herein, THE STRATFORD COMPANY LLC' S obligation to close hereunder is expressly subject to satisfaction or waiver by THE STRATFORD COMPANY LLC in writing of each of the following conditions: 9.1.1 Restrictions, Easements, Limitations: THE STRATFORD COMPANY LLC shall take title subject only to: zoning, restrictions, prohibitions and other requirements imposed by governmental authority; easements, encumbrances and restrictions as shown on the Title Report set forth herein below. Any financial encumbrances, liens and security interests on the Property shall be satisfied by the CITY prior to Closing, so that the title to the Property when conveyed shall be free and clear of any said financial encumbrances, liens and/or security interests. If title cannot be made so insurable prior to closing date the earnest money shall, unless THE STRATFORD COMPANY LLC elects to waive such defects or encumbrances, be refunded to THE STRATFORD COMPANY LLC, less any unpaid costs, and this agreement shall thereupon be terminated. 9.2 The CITY'S Conditions to Closing. Notwithstanding anything to the contrary set forth herein, the CITY'S obligation to close hereunder is expressly subject to satisfaction or waiver by the CITY in writing of each of the following conditions: 9.2.1 Restrictions, Easements, Limitations: The CITY shall take title subject only to: zoning, restrictions, prohibitions and other requirements imposed by governmental authority; easements, encumbrances and restrictions as shown on the Title Report set forth herein below. Any financial encumbrances, liens and security interests on the Property shall be satisfied by THE STRATFORD COMPANY LLC prior to Closing, so that the title to the Property when conveyed shall be free and clear of any said financial encumbrances, liens and/or security interests. If title cannot be made so insurable prior to closing date the earnest money shall, unless the CITY elects to waive such defects or encumbrances, be refunded to the CITY, less any unpaid costs, and this agreement shall thereupon be terminated. 10. REPRESENTATIONS AND WARRANTIES. 10.1 CITY'S Representations and Warranties. The CITY makes no representations or warranties, express or implied, concerning the condition of the CITY'S Properties. THE PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 6 \\Auburn 15\ProLawDocs\275-037\SK\ 129639.doc STRATFORD COMPANY LLC is familiar with the CITY'S Properties and expressly agrees to accept them "AS IS, WITH ALL FAULTS, EASEMENTS, and RESTRICTIONS." THE STRATFORD COMPANY LLC 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 CITY Parcels. 10.2 THE STRATFORD COMPANY LLC' S Representations and Warranties. THE STRATFORD COMPANY LLC makes no representations or warranties, express or implied, concerning the condition of THE STRATFORD COMPANY LLC' S Properties. The CITY is familiar with THE STRATFORD COMPANY LLC'S Properties and expressly agrees to accept them "AS IS, WITH ALL FAULTS, EASEMENTS, and RESTRICTIONS." The CITY 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 STRATFORD COMPANY LLC Parcels. 11. MAINTENANCE OF PROPERTY; RISK OF LOSS, CONDEMNATION. 11.1 The CITY'S Maintenance of Property. From the date of this Agreement until the Closing Date (or any earlier termination of this Agreement), the CITY agrees to maintain the CITY Parcels in substantially the same condition existing as of the date hereof, ordinary wear and tear, damage by casualty excepted. 11.2 THE STRATFORD COMPANY LLC'S Maintenance of Property. From the date of this Agreement until the Closing Date (or any earlier termination of this Agreement), THE STRATFORD COMPANY LLC agrees to maintain THE STRATFORD COMPANY LLC Parcels in substantially the same condition existing as of the date hereof, ordinary wear and tear, damage by casualty excepted. 12. TIME: Time is of the essence for this Contract. Any reference herein to time periods of less than six (6) days shall in the computation thereof, exclude Saturdays, Sundays and legal holidays, and any time period provided for herein which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next business day. 13. NOTICES. All notices, demands and other communications required or permitted to be given hereunder shall be in writing, and shall be sent by personal delivery (including by means of professional messenger or courier service) or registered or certified mail, postage-prepaid, return-receipt requested. Notice shall be deemed to have been given if personally delivered, upon receipt, and if sent by mail, two (2) days after duly deposited in the U.S. Mail. The parties' respective addresses for notices are as follows: THE STRATFORD COMPANY LLC: PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 7 \\Aubum 15TroLawDocs\275-037\SK\ 129639.doc CITY: City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attention: Mayor with concurrent copies to: City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attention: Director of Human Resources, Property and Risk Management and to: City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attention: City Attorney Notice of change of address shall be given by written notice in the manner detailed in this Section 13. 14. GENERAL. This is the entire agreement of THE STRATFORD COMPANY LLC and the CITY with respect to the matters covered hereby and supersedes all prior agreements between them, written or oral. This Agreement may be modified only in writing, signed by THE STRATFORD COMPANY LLC and the CITY. Any waivers hereunder must be in writing. No waiver of any right or remedy in the event of default hereunder shall constitute a waiver of such right or remedy in the event of any subsequent default. This Agreement shall be governed by the laws of the State of Washington. This Agreement is for the benefit only of the parties hereto and shall inure to the benefit of and bind the heirs, personal representatives, successors and permitted assigns of the parties hereto. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision hereof. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. COMMISSIONS. The CITY represents to THE STRATFORD COMPANY LLC that the CITY has engaged no broker, agent or finder in connection with the negotiations leading to this Agreement. THE STRATFORD COMPANY LLC represents to the CITY that THE STRATFORD COMPANY LLC has not engaged or in any way dealt with any broker, agent or finder in connection with the negotiations leading to this Agreement. Each party hereby agrees to indemnify, defend and hold the other party harmless from PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 8 \\Aubum 15\ProLawDocs\275-037\SK\ 129639.doc and against any claims for broker's, agent's, or finder's fees or commissions arising from or through the actions of the indemnifying party. 16. ASSIGNMENT. Either Party may assign this Contract in whole or in part, and the provisions of this Contract shall be binding on the heirs, successors and assigns of the Seller and the Buyer. No. 17. ATTORNEYS' FEES. In the event suit or action is instituted to interpret or enforce the terms of this Agreement, the prevailing party therein shall be entitled to recover from the other party such sum as the Court may adjudge reasonable as attorneys' fees, including fees incurred at trial, on any appeal and in any petition for review. 18. EXCLUSIVITY. 18.1 During the term of this Agreement the CITY shall not market nor list the CITY Parcels for sale, nor accept any offers from third parties with respect to sale of the CITY Parcels. 18.2 During the term of this Agreement THE STRATFORD COMPANY LLC shall not market nor list THE STRATFORD COMPANY LLC Parcels for sale, nor accept any offers from third parties with respect to sale of THE STRATFORD COMPANY LLC Parcels. 19. RESERVATION OF POLICE POWER. Notwithstanding anything to the contrary set forth herein, THE STRATFORD COMPANY LLC understands and acknowledges that the CITY'S authority to exercise its police (regulatory) powers in accordance with applicable law shall not be deemed limited by the provisions of this Agreement. 20. CITY COUNCIL APPROVAL. The Parties acknowledge that this Agreement does not bind the City of Auburn until the Mayor executes the Agreement and the City Council approves of the Agreement. 21. EXHIBITS. Exhibits and attached hereto are incorporated herein as if fully set forth. SIGNED in duplicate original as of the date first above written. AUBURN TH STRATFORD COMPANY LLC By j?, B. Lewis, Mayor \ 1 ,? Name„ ?/?,11?4 Title ???? PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 9 \\Aubum 15\ProLawDocs\275-037\SK\ 129639. doc Attest: D nielle Daskam, City Clerk Apo,/ed as-to form: 'pr P Daniel B. H&id, AWYurn City, Attorney PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 10 \\Auburn 15\ProLawDocs\275-037\SK\ 129639.doc EXHIBITS Exhibit A, Legal Description of CITY Parcels Exhibit B, Legal Description of THE STRATFORD COMPANY LLC Parcels Exhibit C, Depiction of CITY Parcels and THE STRATFORD COMPANY LLC Parcels PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 11 \\Auburn 15TroLawDocs\275-03 7\SK\ 129639. doc EXHIBIT A LEGAL DESCRIPTION OF CITY OF AUBURN PROPERTIES Location 1: Assessor's Property Tax Parcel Number 7815700135 Legal Description: LOTS 7 AND 8, BLOCK 2, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, AT PAGE 56, RECORDS OF KING COUNTY, WASHINGTON Location 2: Assessor's Property Tax Parcel Number 7815700115 Legal Description: LOT 4, BLOCK 2, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, AT PAGE 56, RECORDS OF KING COUNTY, WASHINGTON, EXCEPT THAT PORTION OF SAID LOT 4 LYING EAST OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 4, A DISTANCE OF 58.02 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE SOUTH TO A POINT ON THE SOUTH LINE OF SAID LOT 4, A DISTANCE OF 0.6 FEET WEST OF THE SOUTHEAST CORNER THEREOF. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 12 \\Auburn ] 5\ProLawDocs\275-037\SK\ 129639.doc EXHIBIT B LEGAL DESCRIPTION OF THE STRATFORD COMPANY LLC PROPERTIES Location 1: Assessor's Property Tax Parcel Number 7815700225 Legal Description: LOTS 1 AND 2, BLOCK 5, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, AT PAGE 56, RECORDS OF KING COUNTY, WASHINGTON, TOGETHER WITH THE NORTHERLY TEN (10) FEET OF THE VACATED ALLEY ADJACENT THERETO, VACATED BY CITY OF AUBURN, WASHINGTON ORDINANCE NO. 5842. Location 2: Assessor's Property Tax Parcel Number 7815700240 Legal Description: LOTS 3 and 4, BLOCK 5, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 2 OF PLATS, AT PAGE 56, RECORDS OF KING COUNTY, WASHINGTON. PURCHASE AND SALE AGREEMENT Version Date 07/07/08 to CC Page 13 \\Aubum 15\ProLawDocs\275-037\SK\ 129639.doc i O C 7 C N ?p N Q O O U r or O p uni U Cr g 3 cov _ 00 r m M I I O n N 0 Z C\! LC) N a N O z 0 a c J a a y C « 0 0 g L W a J 0. ? o P o ? 9 v' CM m v v ° o U) L or y p 00 r ? U _ L N p r O n O C O p p t0 Ld O_D r p C J O C ? _ W «o r J N ? yy N Z ` C? N Z y a O « J L a a O CA J L to C CL L- cz MS ISIS L J ? _ o C N Q O M > N U Q o mQ v N o0 U N L N p r 00 L p r N r C ; r C ; 'r or W r 1 v o U 0 C N z O kr O N = ?. (n Ca N 0 L ` J T o J a a I Q. ?I ? I W .r ? ?"vim d ? a a m r ?3 n° t6 .n 0) l6 o o « p i5 0 ?.. O J Q N O i0 J Q 0 r N O J U N C L N U) _ ?i r T c N OD C n N co r d C V co r .. o ; r ; m ; 0 Ll w 0 to c O r e O c a '2 N 2 Z L N Z G C x yy o N y V 04 A. w . Qy ,N J C4 O` a O J l0 d d O J a O W a J IL 0 N - f co 0 ADDENDUM NO. ONE ADDENDUM TO REAL ESTATE PURCHASE AND SALE AGREEMENT BETWEEN THE STRATFORD COMPANY AND THE CITY OF AUBURN T IS ADDENDUM is made and entered into this l day of (1,/4 1 200 k , by and between THE STRATFORD C APA Y, a Washington limited liability company (hereinafter the "THE ST" ATFORD COMPANY LLC"), and the CITY OF AUBURN, a municipal corporation of the State of Washington (hereinafter referred to as the "CITY"), as an addendum to the Agreement between the parties for the Purchase and Sale of Properties as detailed and described in the REAL ESTATE PURCHASE AND SALE AGREEMENT executed by and between the above named parties on the 8th day of July, 2008, WITNESSETH: WHEREAS, in connection with the purchase and sale agreement between the parties, the consideration for that agreement was that the property would be developed in accordance with the proposals discussed by and among the parties; and, WHEREAS, because of the dependence of the agreement on the consideration of such development, it is appropriate that the agreement include an option whereby the property ownership would be addressed in a way that would promote its ultimate development. NOW THEREFORE in consideration of their mutual covenants, conditions and promises, the sufficiency of which consideration is hereby acknowledged by the parties, the PARTIES HERETO HEREBY AGREE as follows: ITEM ONE ADDITIONAL PROVISIONS: That a new Section 23 is added to the Agreement to read as follows: 23. DEVELOPMENT CONDITIONS: THE STRATFORD COMPANY LLC'S Development of the CITY Parcels shall be subject to the following Conditions and Repurchase Option: 23.1 Development of Megablock: shall develop the CITY Parcels as part of for the "megablock" bounded by West Main on the East, First Street Southwest on the the West ("Stratford Development Project"). shall encompass all of King County Tax THE STRATFORD COMPANY LLC i single, unified development project Street on the North, Division Street South, and "A" Street Southwest on The Stratford Development Project Parcels 7815700115, 7815700110, Addendum No. One Page 1 ZAWork-9\Stratford\Addendum No 1 - 07-29-08 clean.doc 7815700095, 7815700085, and 7815700135, including the alleyway running East to West through the megablock. 23.2 THE STRATFORD COMPANY LLC shall attempt to work in a cooperative manner with the owners of the Sunbreak Cafe to develop a plan for the continued operation of the Sunbreak Cafe at its current location, King County Tax Parcel 7815700120 ("Sunbreak Parcel'), or its relocation to a mutually agreeable alternate location. This plan may result in THE STRATFORD COMPANY LLC purchasing the Sunbreak Parcel. If THE STRATFORD COMPANY LLC purchases the Sunbreak Parcel, and the Sunbreak Cafe remains in its current location, THE STRATFORD COMPANY LLC shall provide thirteen (13) parking spaces for the Sunbreak Cafe as part of the Stratford Development Project. Should THE STRATFORD COMPANY LLC acquire the Sunbreak Parcel at a time making its inclusion in the Stratford Development Project practicable, THE STRATFORD COMPANY LLC shall include the parcel in that project. Should THE STRATFORD COMPANY LLC acquire the Sunbreak Parcel too late to include it in the Stratford Development Project, THE STRATFORD COMPANY LLC shall develop the Sunbreak Parcel in a manner that integrates it into the Stratford Development Project to the maximum extent practicable. 23.3 Timeline for Stratford Development Project: Within one hundred twenty (120) days of closing, THE STRATFORD COMPANY LLC shall submit a complete Grading Permit & SEPA Application for the Stratford Development Project, and shall begin work on the project as defined in Paragraph 1.11 of the REAL ESTATE PURCHASE AND SALE AGREEMENT, assuming regulatory permits have been granted, no later than April 1, 2009 ("Start Date"). The City may approve and grant a 90 day extension to the "Start Date" if THE STRATFORD COMPANY LLC exhibits documentable progress towards the project, which documentable progress must be received by the CITY not later than March 1, 2009, and which shall include at a minimum project financing - consisting of either a commitment letter for conventional financing, an invitation letter for HUD or other governmental financing, or other circumstances satisfactory to the City, approved building permits, approved facility extension agreement(s), and an agreement with a contractor to commence work on the project by the "Start Date". 23.3.1 CITY Option to Purchase: THE STRATFORD COMPANY LLC grants the CITY a 90 day option to repurchase the City Parcels at the price set forth in Paragraph 3.1 of the REAL ESTATE PURCHASE AND SALE AGREEMENT, and an option to purchase King County Tax Parcels Nos. 7815700110, 7815700095, 7815700085, at fair market value, plus reasonable documented expenses incurred since the time of purchase, if THE STRATFORD COMPANY LLC has not commenced work on the project by the Start Date or approved extension thereon. The 90 day option runs from the Start Date or approved extension thereon. Fair market value shall be determined, by an Addendum No. One Page 2 ZAWork-9\Stratford\Addendum No 1 - 07-29-08 clean.doc independent appraisal performed by an appraiser mutually agreed upon by the City and THE STRATFORD COMPANY LLC. If the City and THE STRATFORD COMPANY LLC cannot agree upon a mutually agreed upon appraiser, THE STRATFORD COMPANY LLC shall select one appraiser and the City shall select another appraiser, and those two appraisers shall select a third appraiser, and the three appraisers shall determine the fair market value.. The City may exercise said option within ninety (90) days after the Start Date should THE STRATFORD COMPANY LLC fail to commence construction of the project by the Start Date. This option to repurchase shall run with the land, shall be recorded with the King County Recorder's Office against all of the above properties, and shall be binding upon THE STRATFORD COMPANY LLC'S successors, assigns, and any subsequent purchasers. 23.4 Downtown Design Guidelines: THE STRATFORD COMPANY LLC shall develop the Stratford Development Project consistent with the City's Downtown Design Guidelines in effect at the time of grading permit & SEPA submittal. 23.5 Consistent Design Within Four Block Development: In planning the Stratford Development Project, THE STRATFORD COMPANY LLC shall work in a cooperative manner with the city and developer and their design team planning the redevelopment of adjacent properties in the four block development bounded by West/East Main to the north, 2nd Street SW/SE to the south, Auburn Avenue to the east, and A Street SW to the west. To the extent the respective planning schedules allow, THE STRATFORD DEVELOPMENT COMPANY LLC shall endeavor to maintain compatibility of urban design features in such a way that the urban streetscape is of consistent and/or complementary design. 23.6 Dedication of Promenade and Plaza: 23.6.1 As part of the Stratford Development Project, THE STRATFORD COMPANY LLC shall dedicate to the CITY a strip of property ten (10) feet in width adjacent to and along Division Street, which strip of property shall be in addition to the existing right-of-way along Division Street between Main Street and First Street South, and which shall be adequate for a City Promenade along those streets for the full length of the Block, and which shall conform to the requirements set forth in City of Auburn Resolution No. 4361 and in conformity with City codes. 23.6.2 As part of the Stratford Development Project, THE STRATFORD COMPANY LLC shall dedicate to the CITY sufficient property for the City's construction of a circular public plaza sixty (60) feet in radius (one hundred twenty (120) feet in diameter) centered on the intersection of Main and Division Streets. Addendum No. One Page 3 ZAWork-9\Stratford\Addendum No 1 - 07-29-08 clean.doc 23.6.3 As part of the Stratford Development Project, THE STRATFORD COMPANY LLC shall dedicate to the City sufficient property for the City's construction of a circular public plaza sixty (60) feet in radius (one hundred twenty (120) feet in diameter) centered on the intersection of Division Street South and South First Street. 23.7 In consideration for THE STRATFORD COMPANY LLC agreeing to the above conditions, the CITY agrees to: 23.7.1 Availability of City Land for Lease Parking: Upon completion of the project (Certificate of Occupancy) and for a period of up to 20 years thereafter, the City will provide or cause to be provided up to 70 commercial/retail parking spaces (or what is required by City Code at time of the development application, including the possibility of shared parking) on City property directly adjacent to (south of) the Stratford Development. The parking at this location is meant to be temporary and to be replaced by parking at a new location as described below. For the parking at the temporary location, THE STRATFORD COMPANY LLC shall pay the City an amount commensurate with current (2008 dollars) fair market lease rates, including yearly 3% inflation index or future market value increases, during that up-to-20-year lease period. Such leased parking, in combination with parking provided on The Stratford Development site specifically for residential use, shall be utilized to meet code required parking. At any time during the up-to-20-year lease period that the City property (on the adjacent parcel to the south) is no longer available for lease parking due to redevelopment, the City shall provide or cause to be provided an equal number of parking spaces as mentioned above within the downtown urban center for The Stratford Development site and THE STRATFORD COMPANY LLC shall pay for parking at a fair market rates per stall. At such time as a permanent parking facility becomes available, THE STRATFORD COMPANY LLC shall pay, either by leasing or purchasing, their share of parking at the public parking facility at fair market rates per stall. Fair market rates shall be determined, initially and at the time of any relocation of the parking, by an independent appraisal performed by an appraiser mutually agreed upon by the City and THE STRATFORD COMPANY LLC. If the City and THE STRATFORD COMPANY LLC cannot agree upon a mutually agreed upon appraiser, THE STRATFORD COMPANY LLC shall select one appraiser and the City shall select another appraiser, and those two appraisers shall select a third appraiser, and the three appraisers shall determine the fair market rate. 23.7.2 Development of Car-Sharing Agreement. THE STRATFORD COMPANY LLC shall be entitled to develop and submit an Agreement to utilize, and take advantage of, the Mayor's Pilot Program, pursuant to City of Auburn Ordinance No. 6192, as it relates to parking alternatives, as an alternative to meeting the current requirements for residential parking. Addendum No. One Page 4 ZAWork-9\StratfordWddendum No 1 - 07-29-08 clean.doc ITEM TWO CITY COUNCIL APPROVAL. The Parties acknowledge that this Addendum does not bind the City of Auburn until the Mayor executes the underlying Agreement and the City Council approves of the underlying Agreement and this Addendum. Provided that if this approval is not achieved by September 1St, 2008, the underlying Agreement and all related Agreements/Addenda shall become null and void. ITEM THREE CONTINGENT ON FINANCING. The Parties acknowledge that this Addendum and the underlying Agreement are contingent on approval of financing by THE STRATFORD COMPANY LLC. ITEM FOUR REMAINING TERMS UNCHANGED: That all other provisions of the Agreement between the parties for Purchase and Sale of Property, executed on the 8th day of July 2008, shall remain unchanged, and in full force and effect. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. THE TRATFORD GROUP CF AUBURN By: Its: roa kGim r A'? iw Pet 9r B. Lewis, Mayor Attest: By: Its: Attest: nielle E. Daskam, City Clerk Approved as to form: spiel B. Heid, City Attorney Addendum No. One Page 5 ZAWork-9\StratfordWddendum No 1 - 07-29-08 clean.doc