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Home My WebLink About03-15-2004 ITEM VIII-B-2CIiY OF WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject Date: Resolution No. 3701 — LID 250 Formation Agreement March 10, 2004 Department. Finance Attachments. Resolution N. 3701 & Budget Impact. Agreement Administrative Recommendation: City Council adopt Resolution N. 3701. Bai round Summar. This personal guarantee provides the city with additional assurances and protection on the rlpayrnent of the lid. The property will not only have the lien for the amount of repayment, it will also be personally guaranteed by the land owner. This particular LID has only one participant and the ses ,int amount f $702,525 is significant. Staff recommends Council adopt Resolution No. 3701. N0315-3 �� A3.12.9.31 7 ♦1 i +/� F 1 fes. . A1.31 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: : ❑ Building ❑ ❑ 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 Action omni ee Approval: ❑Yes ❑No Council Approval: ❑lies []No Call for Public Hearing ! ! Referred to Until �1,-� Tabled Until �1 1 Counoilrnernber: Backus Staff: Coleman Meeting Date: March 15, 2004 item lumber: VIII.B. AUBURN * MOPE THAN YOU IMAGINED RESOLUTION No. 3 7 0 1 A RESOLUTION 4F THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING AN LID FORMATION AND GUARANTY AGREEMENT TO PROVIDE FOR PUBLIC PARKING IN DOWNTOWN AUBURN WHEREAS, The City of Auburn "City") has entered into a lease agreement with the Central Puget Sound Regional Transit Authority ("Sound Transit") for development of certain public parking improvements ("Improvements") in downtown Auburn; and 11HE�REAS, The City is participating in the development and finc-incing of the Improvements, including financing through the use of one or more local improvement districts; and WHEREAS, certain downtown property will be specially bene*rited by the Improvements, ents, with one such property being able to use the 'improvements to provide for off* street parking. 1 HEREAst to provide for financing for the parking with the owner., David Allen Davis, the City Council authorized an LID Preformation and Guaranty Agreement by Resolution No. 3527; and WHEREAS, the process is now at the stage where the LID Formation and Guaranty Agreement "Agreement" has been prepared and should be executed; and WHEREAS, this Resolution authorizes the Mayor to execute such Agreement for and on behalf of the City. THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Resol-ution No. 3701 March 1, 2004 Pagel Section 1. As a follow-up t the Agreement and process authorized by Resolution No. 3527, the Mayor and City Clerk of the City of Auburn are herewith authorized to execute an LID Formation and Guaranty Agreement ("Agreement"), in substantially the form of the agreement, a copy of which is attached hereto, denominated as Exhibit uA" and made a part hereof as though set forth in full herein. Section 2.. The Mayr 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 , 2004. Peter B. Lewis, Mayor ATTEST: Danielle Da kam, City Clerk - • �, Lan!41 br. ----------...... Resolution 1 . 3701 March 1, 2004 Page 2 Tb Recording Requested by and Return o: CITY OF AUBURN o Foster Pepper & She elman PLLC 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 Attn: P. Stephen DiJu110 Name of Document: LID GUARANTY AGREEMENT t Grantor: DAVID ALLEN DAVIS Grantee: CITY OF AUBURN Abbreviated Legal Description: Additional legal description on Exhibit 1 Assessors Tax Parcel ED Nos. 781570-0145 781570-0146 Deference number(s)of rel d assi ned rcic sed/dcu ent s : 1 5261,01 LID GUARANTY AGREEMENT 1 THIS LID GUARANTY AGREEMENT `Agreement" is entered as of the Effective Date, by and between the CITY F AUBURN, a municipal corporation of the State of Washington `'City" ,, and DAVID ALLEN DAVIS ("Owner"). f SECTION 1. CITALS, 1,1 D vner is proposing development of certai other allowable costs (herein colleen ely referred to as the "financm* g f the I ro ements," as defined further i w 1 nothing contained herein shah be construed to bi additi the special assessments to be levied against the Property in the LID; (iiij the Bonds,, both principal and i 3.5.2 a court of competent jurisdiction determines that an LID cannot be formed; 3. .3 the ,jurisdiction of the City to form the LID or an Alternative LID is divested in accordance with chapter 35.43 CW; or 3.5.4 the City is otherwise prevented from forming the LID or an Alternative LID then Owner shall be obligated toprovide- the of -street parking for the development of Property under the law applicable to the Owner's development application. SOON 4* PERFORMANCE OF OWNER ESSENTUL. The Owner's guarantee to pay the LID assessments levied against the Owner's Property contained in Section 3.2 and to otherwise perform this Agreement w. -e for the benefit of the City and the purchasers of the Bonds (but the Bond purchasers shall not be deemed third -party beneficiaries of this Agreement) and the parties. to this Agreement recognize that purchasers of the Bonds will acquire the Bonds in reliance in part upon this Agreement. The Bond peers shall not be entitled to &5sert -any estoppel to enforce this Agreement. As between the City and the Owner, the City agrees to attempt to exhaust the Collateral under the terms of this Agreement before m king a demand upon the Owner to male a payment under the guarantee contained in Section 3,2. -- 0407b 1.01 SECTION 5s CONTRACT LIED AND CHARGE ON oWNE ' S PROPERTY; CONVEYANCE RY OWNEM .1 This Agreement shall be recorded in the office of the Division of Records and Elections of King County, Washington, shall be binding on the successors m interest to and assigns of the Owner of the Owner's Property (and reference to the "Owner" herein shall include those successors and assigns, when appropriate in the context of the provisions of this Agreement), and ' shall constitute a lien and c%ha.rge on the miner's Property to secure the performance of 'the Chvner under this Agreement. The obligations of the Owner under the Agreement shall follow the ownership of the Owner's Property to the owner's successors and assigns, The lien and charge imposed by this Agreement on the owner' -s Property shall be enforceable under the laves governing the foreclosure of mortgages, except as modified herein, and the City may elect to enforce the lien of this Agreement against any portion of theOwner's. Property then subject to the lien, but such election shall be in accordance With RCW 1.12,140, 5.2 Any purchaser or purchasers of the Owner's Property or a portion of the Owner's Property shall assume all or a proportionate share of the Owner's obligations hereunder. 5.3 If the City agrees to segregate one or more portions of the Owner's Propertyprior to the conation of the final assessment roll and filing of the lien thereof against theOwner's Property, or at any time and from time to time thereafter, r and the assessment chargeable to one or more of those segregated portions is pai SECTION 6.DEFAULT; ELECTION of REMEDIES. F If there is a default in the payment of any assessment installment or interest or penalty thereon, the City may elect to enforce its assessment lien against the Owner's Property by foreclosure proceedings i rae d�ately, notwithstanding any wait ig period prescribed by statute. If the Owner defaults in any performance under this Agreement, the City may deet to Proceed to obtain any appropriate legal or equitable relief without waiving the right to enforce this Agreementr the payment of the LID assessments later in- any other manner. All of the City's rights hereunder are cumulative, and the reference to the words `election" or "elect" shall not act toii nit any of the other rights hereunder or under law generally. SECTION 7, GENERAL. 7.1 - Waiver. Any waiver of a right to enforce a provision of this Agreement by either the City or Owner shall, not constitute a waiver of any similar or other subsequent right to enforce the same or any other provision of this Agreement. .2 Notices. Any notice, demand, request, consent, or other comnyunication required or permitted under this Agreement to be given shall be in writing and be (a) delivered personally to the parties, b sent by certified mail, return receipt requested, or by private overnight courier to the parties at their rsPeetive addresses listed below, or a sent by regular mail to the parties at their respective addresses listed below. Any such communication shall be deemed given when so delivered, deposited m a U.S. Postal Service mail box with first-class postage prepaid or deposited with the private a ur"er, or transmitted, unless receipt is expressly required elsewhere in this _dw 50420761.01 Agreement, Any party may give to the other party notice of a change of address in the manner proviedn this section. city; City of Auburn Municipal Building Office of the City Attorney 25 west Main Auburn, Washington 98001-4998 Owner: David Allen Davis 635 "C" Street SW Auburn,, WA 98001 7.3 Choice of Law — venue. This Agreement shall be governed and construed in accordance- with the laws of the Mate of Washington, and venue connecti (b) the final assessment roll for the LID or an Altem,ative LID is confirmed and all appeals have been concluded. 7.5.2 1f the LID or an Alternative LID is not formed within one hundred twenty 120 months after the Effective date of this Agreement, c3xce t as provided in Section 2,2 of this Agreement, then this Agreement shall terminate and be of no further force and effect, except with regard to the obligations of owner set forth in Section 3.5. 7.6 Entire Understanding and Severability. This Agreement is the entire understanding between the parties and no changes, � amendments or alterations shall be effective unless agreed to inruing and signed by both parties. If any provision of this Agreement is finally determined by a cert of competent ,jurisdiction to be invalid or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect, provided, however, in 'the event the invalid or unenforceable ;provision is a material part of the consideration for this Agreement this Agreement shall thereby be rendered voidable at the option of either party. The option to void this Agreement shall be exercised by 'sending Witten notice to the other party no later Chari tern (1 0) business days after the court's determination becomes final or the option shall 1,hereafler e deemed to be waived. SECTION 8. EFFECTIVE DA'Z'E. This Agreement is effective January 1, 200 4. 50420761, 011 SECTION 9. EXECTIT. IN WITNESS WHEREOF", the parties execute this Agreement on behalf of the parties, and warrant that they have the authority to execute for ars on behalf of the party so represented. City of Aubum t City of Auburn 0 R: fAt; L DAVID ALLEN DAMS -12- 50420761.01 2_50420761.01 U Mayor Citi of Auburn STATE OF WASHINGTON COUNTY OF C1 Ss. I certify that I know or have satisfactory evidence that DAVID ALLEN DAVIS is the person who appeared before ane, and said person a kno led ed that said person signed this instrument, on oath stated that saidperson vas athre o execute the Inst ument and acknowledged it to be his free and voluntary act for the uses and poses mentioned in the instrument. Dated this '4of Zoo. 8004#04% (Si atm of Notar *00 9,940 P o .AR .. r '0 z Or {Legibly Print or Sftw Al of NO PUP • ' ''' • 4 ,'•.,, i.*,� * rotary public and for -the State of .,1040 *. Washington, residing at F My appointment expires _1. 50420761.01 SIT LIST Property Legal Description 2. Description of Improvements . Property Development Plan/Description -14- EXHIBIT I LEGAL DESCRIPTION Lot 1, Block 3, 'on of Slaughter, according to the plat recorded in Volume 2 of plats, page 56, records of the County of Iii., Mate Of Washington. EXHIBIT 1 5042V61.01 EXHIBIT DESCRIPTION BIPoVEMTTS A .inti -story public paring facility developed by the Central Puget F Sound Regional Transit Authority. and the City of Auburn, as more completely described in the Lease authorized by City Resolution 3278. EXHIBIT 5D420761.01 EXHIBIT 3 PROPERTY I EVE oP1 ENT PLAN/DESCRIPTION The Property is located at 102 West Main Street. The development is,, a -story, mixed-use, 21,000 square foot building. The 7200 -foot lot 1s fully occupied. The zoning is "C-2 downtown," and the building is "type 111 one hour." Occupancy is . expected to be a main door restaurant, second floor banquet space and third floor offices. a EXHIBIT 3