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HomeMy WebLinkAbout03-01-2010 ITEM VIII-B-4CITY OF AW- r, U:00 --� WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 4574 Date: Agreement between City of Auburn -and Auburn Professional Plaza February 23, 2010 Department: Attachments.. Budget Impact: Human Resources Resolution No. 4574 ❑ Park Board Adm'i'nistrative Recommendation: City Council adopt Resolufion.No. 4574. Background Summary: The Agreement ("Agreement") to be entered into between AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company ("APP"), and THE CITY OF AUBURN, a code City of the state of Washington ("the City"), and is in reference to the following: APP is the owner of "the City Condo Units" in that certain Condominium Project known as One Main Professional Plaza, a Condominium, as recorded under the certain Condominium Map in the official records of King County, Washington (the "One Main Condominium"). APP, as landlord, and the City, as tenant, will heretofore enter'l'nto a lease agreement whereby the City leases from APP the City Condo Units. The City presently occupies the City Condo Units.. 0 As part of the consideration for the parties' execution of this Agreement, APP hereby agrees to sell to the City, and the City hereby agrees to purchase from APP, the City Condo Units, including all improvements and appurtenances thereto including, without limitation, the HVAC units serving the City Condo Units upon the terms hereinafter set forth in the Agreement. 0 As part of the consideration for the parties' execution of this Agreement, concurrent with the City Condo Units Close of Escrow APP shall convey to the City by statutory warranty deed its fee simple interest in the Mel I s Property, together with its entire beneficial interest as Grantor under the Mel's Parking Easement,, S0301 ml Reviewed by Council &Cml"1'11eP.s: Arts Commission COUNCIL COMMI EES: ❑Airport Financ � Hearing Examiner Municipal Serv. �] Human Services Planning & CD ❑ Park Board ❑ Public Works El Planning Comm. Other Ac tion. Committee Approval: Council Approval: Referred to Tabled Reviewed by Departments & Divisions: Q Building ❑ M&O ❑ Cemetery D Mayor � Finance Parks ❑ Fire ❑ Planning � Legal p Police p Public Works 129 Human Resources El Information Services El Yes N o E]Yes N o Call for Public Hearing Until ! Unfill / Councilmember: Backus I Staff: Heineman MMMM" Meeting Date: March 1, 2010 Item Number: V111.13,4 IL AUBURN 'k MO RE THAN YOU IMAGINED RESOLUTION NO. 4574 A RESOLUTION OF THE CITY COUNCIL OF THE . CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND AUBURN PROFESSIONAL PLAZA, LLC, AMENDING VARIOUS PREVIOUS AGREEMENTS WHEREAS, the City, in Resolution No. 4393, entered into an agreement with Auburn Professional Plaza, LLC ("APP") for the sale of property to APP; and WHEREAS, the City, in Resolution Na. 4394, entered into a lease agreement with APP under which the City would lease office space in a building 10 10 to be constructed by APP. This lease, contained provisions giving the City an option to purchase the leased properties, and also allocated to the city -leased units certain off-site parking spaces as limited common elements of the APP; and WHEREAS, the City, in Resolution No., 4436, executed a lease with APP to allow APP to lease certa'In City -owned parking spaces in the Auburn Central Garage; and WHEREAS, C'Ity staff recommends a series of amendments to these agreements that w'111 provide for lower costs to the City, an earlier closing date for the City's exercise of its purchase option, and other public benefits; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, HEREBY RESOLVES as follows: Sectq� ion 1. That the Mayor and City Clerk are hereby authorized to sign an agreement with APP in substantially the same for as the agreement at Exhibit A, which is incorporated herein. W vw� rm mw��-6= lftr�� M �� M ��� M ��� Resolution No., 4574 February 22, 2010 Page 1 of 2 Section 2. That the Mayor is authorized to implement such ad1flon"strat'i've procedures as may be necessary to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force IP upon passage and signatures hereon. Dated and Signed this day of CITY OF AUBURN PETER B. LEWIS MAYOR ATTEST,, Danielle E. Daskam, City Clerk � r.rl 1 � • •� / i r� roil bi Resolution No. 4574 February 22, 2010 Page 2 of 2 2010. EXHIBIT A, RESOLUTION NO. 4574 0 CITY - APP AGREEMENT 0 This Agreement ("Agreement"), dated , 2010 is entered into between AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company ("APP"), and THE CITY OF AUBURN, a code City of the state of Washington ("the City" }, and is in reference to the following. a A. APP is the owner of Units 200, 300, 3Q0", "Gonda Unit 380" and "Condo Unit 390", Units" ) in that certain Condominium Project Condominium, as recorded under the certain King County, Washington under recording nc 380 and 390 ("Condo.,unit 200", "Condo Unit respectively, and<collectively "the City Condo known as One�maqln Professional Plaza, a Condominium -4% Ma[Lthe official records of (the "One Main Condominium }. .diIn or r `�0%11119:, ;:NMV Lz�° kIt VIA :;hL B. APP, as landlord, and the City, as tenant, have%,heretofore entered into a lease 'kYti %:W. 4'�v' agreement whereby the City leases from APF�IheL%%City Codo Units. The�City presently occupies the City Condo Units. Condo Unit 39Q is described'inq�saird lease as�Un*t 305 and contains 2,586 rentable square feet, which equals 2,039wble-r 01 asquare feet. C. APP is the owner of that c6',%E ain%real property sit'd1% "t's#ed in the City of Auburn, King 1 0 County, Washington, legally described as"B,lock�.7`, Map of L.NW �,Ballard's Park Addition to LL�tL ti0 Slaughter, according to the Plat Thereof reco raea%% oIu me 3 o4% f'Plats, Page 91, records o f King County, Washington; together with the%vacatekd P1Nestpti10:feet of Silver Street {now "A" %,., ,tom ..�titi. �L,,s. Street NW} adjoining, and,is known by the K'ng�Gbunty Tax`Assessor as Assessor's Parcel nos. 0492000460, 049200046 "and�0r49200463 ("the Mel's Property ). There are one hundred \�tti 1l'4yR�1h ' 1 twenty (120) surface::P'arking spaces on the Mel;.s Property. �V-;:; . N:t I :X di;% D. APP, in its ca'PacitieA, s�?as�D.-eclarant under the One Main Condominium and as owner of the ,MeI� P,.,.,, t�eretofore,gran�ed°'certain rights over the Mel's Property in favor of the 0ne",§M'ain10-*Condominium;�!�and also retained certain rights with respect to the Mel's Propert'.1all as pro vided�i� that certain Parking Easement Agreement recorded in the office records, of; Kin g County;'1l1/ashingto w,,Under recording no. 200911180413 ("the Mel's Parking y E a s e me n 4,�\% � z E. U ndersSectior� 8Nr X �1� and APPendix B of that certain [Condominium Declaration] ("APP Condo DecN L laration"}`concerning the APP Condominium recorded in the office records of King County, W"a"5hington under recording noL.- APP �� assigned to the'`awner of Unit 200 the beneficial interest in one hundred four (104) of the parking spaces that are a part of the Mel's Parking Easement. F. The City is the owner of Units ("Garage Unit") in that certain Condom'in'ium Project known as ` , a Condominium, as recorded under the certain Condominium Map in the official records of King County, Washington under V recording no. (the "Garage Condominium"). The Garage Unit comprises 145 parking spaces located within the Garage Condominium. G. The City, as landlord, and APP, as tenant, have heretofore entered into a Parking Garage Lease Agreement ("Garage Lease Agreement") dated December 15, 2009 whereby No, APP leases from the City up to fifty (50) of the parking spaces that are a part of the Garage U ni t. H. The parties wish to enter into modify their agreements concerning the City Condo Un'i'ts, the Mel's Parking Easement and the Garage Unit. Now, there -fore, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the patties agree as follows.. 1. Sale 1 Purchase of. Cit Condo Units. As part of the consi'derat'ion for the parties' execution of this Agreement, APP hereby agrees to sell to the City, and the City hereby agrees to purchase from APP, the City Condo Units, including all improvements and appurtenances thereto including, without limitation, the HVAC units serving the City Condo Units upon the terms hereinafter set forth. Within five (5) days after execution of this Agreement, the parties shall cause an escrow ("Escrow") to be opened at Pacific Northwest Title Company of Washington, Inc., Commercial Real Estate Division, 215 Columbia Street, Seattle, Washington 98104, Attention.- Aubry Ludberg, Escrow Officer ("Escrowholder"), The t'ltle insurance herein required shall be furnished by Pacific Northwest Title Company of Wash'i'ngton, Inc. ("the Title Company"),, The "City Cando Units Close of Escrow" shall be on the date selected by the City (upon no fess than thirty (3Q) days advance written notice to 'F APP), provided the City Condo Units Close of Escrow shall be between March 31 and April 30, 2010. Time is of the essence. The Purchase Price shall be Twenty Four Million Four Hundred Eighty Eight Thousand Two Hundred Ninety Six and xx/100 Dollars ($24,488,296.00), payable in current funds at the City Condo Units Close of Escrow. At the City Condo Units Close of Escrow: (a) APP shall convey the City Condo Units to the City, or the City's designee, by statutory warranty deed subject to the Title Exceptions attached hereto as Exhibit "A" and such matters as shall hereafter be approved by the City, and (b) shall assign to the City, or to the City's designee, all assignable construction, equipment, and supplier warrant'i'es pertaining to the City Condo Units. 0 The City shall pay the real estate transfer excise tax ["excise tax"] ('If any), recording and escrow fees and the title insurance premium. The C'ftyi's currently in possession of the City Condo Units. 2, Mel's Pro ert and Mel's Parkin Easement. AsP art of the consideration for the parties' execution of this Agreement, concurrent with the City Condo Units Close of escrow APP shall convey to the City by statutory warranty deed its fee simple interest in the Mel's Property, together with its entire beneficial interest as Grantor under the Mel's Parking Easement. The grantor's and grantee's interests in the Mel's Parking Easement "shall not merge and the Mel's Parking Easement shall remain in effect for the benefit of the One Main Condominium. In its capacity as grantee under the Mel's Parking Easement, APP hereby consents to the deletion of Article 4 thereof should the City, as successor grantor thereunder, hereafter elect to do so. 3. Right to Develop the Mees Property. As part of the consideration for the parties' execution of this Agreement, concurrent with the conveyance of the City Condo Units and the Mel's Property to the City, the City and APP shall execute and record in the public records of King County, Washington that certa'i'n "Development Rights Agreement" attach ed hereto as Exhibit " B". 40. Riaht tc F urchase Ci Condo Unit 390. As part parties' execution of this Agreement, the City hereby grants 0 of the consideration for APP an irrevocable option the to purchase City Condo Unit 390 ("Unit 390 Option"). The term of the Unit 390 Option ("Unit 390 Option Term") shall commence as of City Condo Units Close of the Escrow, and shall 'F term'i'nate exactly two (2) years thereafter. APP shall give the City not less than seventy-five (75) days advance written notice of the desired date for "Unit 394 Close of Escrow",, Within five (5) days after APP's exercise of the Unit 394 Option, the parties shall cause an escrow ("Escrow") Oto be Opened at Pacific Northwest Title Company of Washington, Inc., Commercial Real Estate Division, 215 Columbia Street, Seattle, Washington 9$104, Attent'i'on: Aubry Ludberg, Escrow Officer ("Escrowholder'). The title insurance herein required shall be furnished by Pacific Northwest Title Company of Washington, Inc. ("the Title Company"). Time is of the essence. The Purchase Price for C'Ity Condo Unit 390 shall be One Million Seventy Four Thousand Nine Hundred Forty Nine and xx/ Dollars ($1,074,949.00), payable in current funds at the Unit 390 Close of Escrow,, Additionally, APP agrees to construct all tenant improvements required to relocate employee space and break room into another portion of the City Condo Units before any purchase of City Condo Unit 390 is completed (close of escrow). The City has the sole right to approve the design and construction of these tenant improvements associated with the relocation of the employee space and break room. At the Unit 390 Close of Escrow:(a) the City shall convey City Condo Unit 390 to APP, or APP's designee, by statutory warranty deed subject to the Title Exceptions attached hereto as Exh'ib'it "A" and such matters as shall hereafter be approved by APP, and (b) shall assign to APP, or to APP's designee, all assignable construction, equipment, and supplier warranties pertaining to City Condo Unit 390., APP shall pay the real estate transfer excise tax ["excise tax"] ('If any), recording and escrow fees and the title insurance premium. The City shall surrender possession of City Condo Unit 390 at the Unit 394 Close of Escrow. Concurrent with the City Condo Units Close of Escrow, the City and APP shall execute and record in the public records of King County, Washington that certain "Memorandum of Option — Unit 390" attached hereto as Exhibit "C". 5, license of Additional Parking Spaces within Garage Unit; Right to Purchase Garage Unit. As part of the consideration for the parties' execution of this Agreement, at the City Cando Units' Close of Escrow the parties shall execute that certain First Amendment to Parking Garage Lease set forth as Exhibit "D" attached hereto, and shall execute and record in the public records of King County, Washington that certain "Memorandum of Parking Garage Lease" attached hereto as Exhibit "E". 6. Notices. All notices, consents, approvals or demands required under this Agreement shall be in writing and shall be deemed delivered when either: (a) deposited in the United States mail, certified or registered, postage prepaid.1 ; (b) transmitted by telegraphic or electronic means or by recognized courier service, with proof of service provided, or (c) del'i'vered in person; i n any event addressed to or delivered to the appropriate party at all addresses for such party, as follows: APP: Auburn Professional Plaza, LLC c/o Michael John Klein, Esq. 5743 Corsa Avenue, Suite 216 Westlake Vi'llage , California 9 1362 with concurrent copies to,, Auburn Professional Plaza, LLC P.O. Box 1294 1 9C Auburn, Washington 98071.,..1294 Attention: Jaffray Oliphant, President and to: Anthony L. Rafel, Esq. Rafal Law Group, PLLC 999 Third Avenue, Suite 1600 Seattle, Washington 98101 The City: City of Auburn 25 West Main Street Auburn, Washington 98001-499$ Attention: Mayor with concurrent copies to: City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attention: Director of Human Management and to: City of Auburn 25 West Main Street Auburn, Washington 98001-49198 Attention: City Attorney Resources, Risk and Property or to such other and additional addresses as either party may from time to time designate for this purpose. 7. Miscellaneous. (A) Captions. Captions of Sections and subsections of th'Is Agreement are for convenience only and shall not be considered in resolving any questions of interpretation or construction of any term, covenantor provision. (B) Binding Effect. Each and all of the terms, covenants and conditions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors in interest and assaigns.- (C) Governing Law. This Agreement shall be governed and interpreted IN solely by the laws of the State of Washington. Venue for any action hereunder or relating hereto shall solely be J*n King County, Washington. (D) Time. Time is of the essence of this Agreement and of each and every provision thereof. 4 (E) Force Maj'eure. In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Agreement, then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. The insufficiency or the lack of funds, or the filing of or against a party under Title 11 of the United States Code shall not excuse or delay the timely performance by such party of its covenants under this Agreement. The provisions of this subsection shall not operate to excuse any party from the timely payment of sums required by the terms of this Agreement. (F) Written Agreement. This Agreement, and the concurrent and prior written agreements between the parties to the extent not modified herein, contains the entire agreement of the parties. It is understood that there are no verbal agreements between the parties hereto. ' (G) Waiver of Jury Trial. Theartiesphereby waive the right to trial by jury. Any dispute between Landlord and Tenant or in which they are joined as parties shall only be 0 submitted to a judge sitting without a jury. (H) 0 Non -Waiver. No covenant, term or condition of this Agreement (or breach thereof} shall be deemed waived except if expressly waived in a written instrument executed by the waiving party specifically reciting the covenant, term or condition (or breach thereof being waived, and any such waives of such covenant, term, condition or breach, shall not be deemed to be a waiver of any preceding or succeeding, covenant, term, condition, or breach.. {I} Severability. If any one or more of the provisions of this Agreement, or the applicab'I'll'I'ty of any such provision to a specific situation, shall be held invalid or unenforceable, such provision shall be modified to the extent necessary to make it orits application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. . (J) Attornev's Fees. In connection with this Agreement and its performance, APP and the City shall each pay their own attorney's fees,, In the event of any default or other breach by a party to this Agreement, the prevailing party shall be entitled to recover attorney's fees in any action or arbitration to enforce the provisions hereof. The term "attorney's fees" as used herein and elsewhere in this Lease shall mean and include all reasonable legal fees and charges, including appellate fees and charges, paralegal fees and charges, court, filing, and process fees, marshal's and sheriffs fees and charges, investigative fees and charges, and all other sums related thereto. [This page ends here.] . J (SEE EXHIBITS "A" THROUGH "E" ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE.) IN WITNESS WHEREOF, APF' and the City have duly executed this Agreement as of the day and year first above written. AUBURN PROFESSIONAL PLAZA, LLC @- a Washington limited liability company By: Oliphant Real Estate Services, Inc. a Washington corporation its manager and managing member By.1 : STATE OF COUNTY OF Jeffrey Oliphant, President On 1 2010 before me, , Notary Public, personally appeared Jeffrey Oliphant, personally known to me to be the person whose name is subscribed to the wfthin instrument and acknowledged to me that he executed the same in his authorized capac'Ity, and that by his s ignakure on the instrument the person(s), or the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY l�, THE CITY OF AUBURN a municipal corporation By: STATE OF WASHINGTON COUNTY OF KING Peter Lewis, Mayor j On 2010 before me, ,Notary Public, personally appeared Peter Lewis, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the W nstrument the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY EXHIBIT "A" TITLE EXCEPTIONS •1. Real estate taxes not yet due and payable as of the City Condo Units Close of Escrow or the Unit 390 Close of Escrow, as applicable. 2 —xx [Insert exceptions from current title report.] XX., Any easements or other conveyances hereafter granted to public or franchise utility companies or similar companies as AQP deems necessary or appropriate to fulfill its obligations to the City and/or to other tenants underAPP's agreements with such tenants so long as the same could not reasonably be expected to have a material adverse impact on the value, operation or use of the City Cando Units and the City has given prior written approval of the same, such approval not to be unreasonably withheld or delayed.. XX Any easements or other conveyances to be hereafter granted to any public authority for any purpose as are necessary or appropriate for APP to fulfill its obligations to the City and/or to other tenants under APP's agreements with such tenants so long as the same could not reasonably be expected to have a material adverse impact on the value, operation or use of the City Condo Units and the City has given prior written approval of the same, such approval not to be unreasonably withheld or delayed. XX, Any Easements or other vehicular and/or pedestrian access agreements to be hereafter granted or made between APP and adjacent property owners so long as the same could not reasonably be expected to have a material adverse impact on the value, operation F q or use of the City Condo Units and the City has given prior written approval of the same, such approval not to be unreasonably withheld or delayed. XX -1 The Condominium Declaration and Condominium Survey Map and Plans, as approved by the parties. [This Exhibit ends here.] 8 :VA . II =] I M -li DEVELOPMENT RIGHTS AGREEMENT AFTER RECORDING RETURN TO: Auburn Professional Plaza, LLC c/o Michael John Klein, CPA 5743 Corsa Avenue, Suite 216 Westlake Village, CA 91362 DEVELOPMENT RIGHTS AGREEMENT Grantor: Grantee: legal Description: .0 Assessor's Tax Parcel ID #: CITY OF AUBURN AUBURN PROFESSIONAL PLAZA LLC, a Washington limited liability company BLOCK 7, MAP OF L.W. BALLARD'S PARK ADDITION TO SLAUGHTER, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 3 OF PLATS, PAGE 91 , RECORDS OF KING COUNTY, WASHINGTON; TOGETHER WITH THE VACATED WEST 10 FEET OF SILVER STREET (NOW "A" STREET NORTHWEST) ADJOINING. , 0492000460, 0492000461, 049200463 9 DEVELOPMENT RIGHTS AGREEMENT THIS DEVELOPMENT RIGHTS AGREEMENT (this "Agreement") is entered into as of '1 2010, by and between THE CITY OF AUBURN, a code the City of .the state of Washington ("Grantor"), and AUBURN PROFESSIONAL PLAZA LLC, a Washington limited liability company (" Grantee"), with reference to the following facts: RECITALS A. Concurrent with the recordation hereof, Grantor acquired from Grantee fee simple title to that certain real property situated in the City of Auburn, King County, Washington, legally described as Block 7, Map of L.W. Ballard's Park Addition to Slaughter, According to the Plat thereof recorded In Volume 3 of Plats, Page 91, records of King County, Washington; together with the vacated West 10 feet of Silver Street (naw "A" Street NW) adjoining and is known by the King County Tax Assessor as Assessor's Parcel nos. 0492000460, 0492000461 and 049200463 (the "Mel's Property"). B. The Mel's Property is improved with, among other things, a surface parking lot (the "Parking Lok") containing one hundred twenty (12 0) parking spaces (the °Parking Spaces"). C. Grantee conveyed the Mel's Property to Grantor upon the understanding that Grantor would grant Grantee the rights hereinafter set forth, and Grantor purchased the Mel's Property upon the understanding that Grantee would receive the rig h ts herein set forth. NOW, THEREFORE, in consideration of the covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor and Grantee agree as follows: 1 Development of the Mel's Prop. Grantor hereby grants to Grantee the exclusive right to develop the Mel's Property in any manner that Grantee shall determine in its soleudjgment, subject to: (a) the prov'is'ions of this Agreement; and (b) compliance with all applicable governmental codes, laws, and regulations. In connection with any such development of the Mel's Property, Grantee shall, except as otherwise provided hereinafter, at its expense, rel ocate the Parking Spaces within any development on the Mel's Property. Upon Grantee's election to develop the Mel's Property, Grantor, in its capacity as property owner, shall reasonably assist Grantee in signing or consenting to all necessary or appropriate applications, submittals and related documents. Provided, that nothing in this Agreement shall obligate Grantor to exercise any of its regulatory powers in favor of Grantee, and Grantee is not relieved of its obligations to obtain any necessary permits. Further, upon Grantee's delivery to Grantor of reasonable evidence indicating: (i) governmental permits for the construction of the development have been issued or are ready to issue; (ii) a source of funds to pay for the proposed development; and {iii} the design and access to the proposed new location for the Parking Spaces, Grantor shall convey tee simple title to the Men's Property to Grantee. Grantee shall pay the real estate transfer excise tax [" excise tax"] (if any), recording and escrow fees and the title insurance premium. Grantor shall surrender possession of the Mel's Property i*n accordance with the terms of this Agreement.. Grantor and the Grantee shalt execute an amendment to this Agreement showing the location of t e 10 I Parking Spaces on the new Parking Plan, and once the replacement Parking Spaces have been completed, the parties shall cause the formation of a condominium to own the Mel's Property, and Grantee shall convey to Grantor a condominium unit comprised of said RN. Parking Spaces and containing such terms and provisions pertaining to operating expenses, management, insurance and indemnity comparable to those set forth herein. Further, Grantor and/or Grantee, as applicable, as members of the owners assoc'iat'ion of One Main Professional Plaza, a Condominium shall also execute and record amendments to the Condominium Documents of One Main Professional Plaza necessary to show the relocated Parking Spaces that are associated with said Condominium. Unless otherwise agreed by the Grantor, Grantee shall provide the same number of temporary substitute parking spaces for use by Grantor during the development of the Mel's Property until the relocated Parking Spaces on the Mel's Property are available for use,, 2. Substitution of Mel's Property. Grantee reserves the right to substitute the Mel's Property and the Parking Spaces with other property providing the same number of Parking Spaces (120 including not less than five disabled -accessible parking spaces) within one thousand (1,000) feet of the Auburn Professional Plaza (the "substituted Property").. Upon Grantee's election to substitute the Mel's Property and the Parking Spaces with the Substituted Property, Grantor shall reasonably assist Grantee in signing or consenting to all necessary or appropriate applications, submittals and related documents. Further, upon Grantee's delivery to Grantor of reasonable evidence indicating: (i) governmental permits for the construction of the development have been issued or are ready to issue; (ii) a source of funds to pay for the proposed development; and (iii) the design and access to the Substituted Property, Grantor shall convey fee simple title to the Mel's Property to Grantee. Grantee shall pay the real estate transfer excise tax ["excise tax"] ('I'f any), recording and escrow fees and the title insurance premium. Grantor shall surrender possession of the Mel's Property in accordance with the terms of this Agreement. Grantor and the Grantee shall execute an amendment to this Agreement showing the location of the Parking Spaces on the Substituted Property and once the replacement Parking Spaces have been completed thereon, the part'i'es shall cause the formation of a condominium to own the Substituted Property, and, Grantee shall convey to Grantor a condominium unit compr'i'sed of said Parking Spaces on the Substituted Property and containing such terms and provisions pertaining to operating expenses, management, insurance and indemnity comparable to those set forth herein. Further, Grantor and/or Grantee, as applicable, and the owners association of One Main Professional Plaza, a Condominium shall also execute and record amendments to the Condominium Documents of One Main Professional Plaza necessary to show the relocated Parking spaces an the Substituted Property that are associated with said Condominium. Unless otherwise agreed by the Grantor, Grantee shall provide the same number of temporary substitute parking spaces for use by Grantor during the development of the Mel's Property until the relocated Parking Spaces on the Substituted Property are available for use. 3. No Devellovment by the City. During the term hereof, the City shall not develop the Mel's Property, or change its use from a surface parking lot containing 124 Parking Spaces.. 4. Restricted Access System. Grantor or Grantee may implement an access card, sticker or ocher identification or entrance system for access to the Parking Spaces on the Mel I s Property or the substituted Property, as applicable; provided (01) such access system does not restrict continuous access to the Parking Spaces by the Grantor; and ('1"I) if applicable, Grantee promptly provides Grantor with sufficient parking identification, key -cards or other access devices (including temporary passes and replacements for lost or stolen identification, cards or devices) necessary for such continuous access. Grantor or Grantee may impose a reasonable charge for providing such identification, cards or devices, provided such charge does not exceed the actual out-of-pocket administrative and replacement cost incurred in obtaining or otherw'i'se producing such identification, cards or devices. 0 5. Other Easements. Grantor shall have the right to grant other persons easement rights in, on, under or across the Mel's Property so long as such easement rights do not interfere with the easements and rights granted Grantee under this Agreement. F. 6., Development of the Mel's Property, Tem[?ora!y Parking Spaces or Substituted Prope In the event Grantee develops the Mel's Property under Section 1 or provides Subst'i'tuted Property under Section 2 and there are more parking spaces in the development on the Mel's Property or on the Substituted Property than the 120 parking spaces required to be provided to the Grantor under this Agreement, the term "Parking Lot it shat! mean the parking IF garage or facility in such development or an such property. Grantee shall reasonably determine the portion of the Operating Expenses allocable to the parking garage or facility and the Grantor and Grantee shall share of such costs based upon the number of the Parking Spaces allocated to each of Grantor and Grantee on the Mel's Property or on the Substituted Property. {a} "Operating Expenses" means all costs and expenses incurred in connection with: ('I) all utility services provided to the Parking Lot; (ii) all permits, licenses and certificates necessary to operate, manage, maintain and repair the Parking Lot; (iii) all Insurance Costs (as defined hereinafter); (iv) the purchase or rental of supplies, tools, equipment and materials to the extent they are used in connection with the use, operation, maintenance, repair or restoration of the Parkbing Lot; (v) expenses incurred in order to comply with any laws, regulations or governmental requirements of any kind; (vi) wages, salaries and other compensation and benefits for all persons, to the extent (but only to the extent) they were engaged in connection with the operation, maintenance, repair, or restoration of, and providing security services for, the Parking Lot, including employer's Social Security taxes, unemployment taxes or insurance, and any other taxes which may be levied an such wages, salaries, compensation and benefits; (vii) all Property Taxes (as defined hereinafter); (viii) all operating costs of the Parking Lot and all systems and equipment servicing the Parking Lot and component services, including, but not limited to, janitorial service, security, trash removal, cleaning, management, maintenance, repair and replacement of lighting, gates, fences, barriers, signs, walkways, driveways, curbs, security and access equipment, devices, and systems, and drainage facilities; {ix} resurfacing, repair, repaving and re-striping of the Parking Lot and the surrounding areas and sidewalks providing access thereto; (x) removal of ice and snow from the Parking Lot and entrances and exits thereto,, and (xi) any service or maintenance contracts related to the operation, maintenance, repair, or restoration of the Parking Lot.. (b) "Property Taxes" means all federal, state, county Dr ocal governmental or municipal taxes, assessments, levies, fees, charges or other impositions of every kind and nature levied against the Parking Lot including, without limitation, real and personal property taxes, general and special assessments, transit taxes, water and sewer rent or other similar taxes, fees or changes in taxes assessed in lieu of any of the foregoing. Notwithstanding anyth'i'ng herein to the contrary, in the event the Property Taxes for Parking Spaces are separately assessed against Grantor, and remainder of the Mel's Property or the Substituted Property is separately assessed, then Property Taxes shall not be poet of Operating Expenses that are to be paid proportionately. Grantor and Grantee each agree to cooperate with the 12 other, including attending meetings with the tax assessor, to facilitate such separate assessment or an accurate billing and calculation of Property Taxes as contemplated by this Agreement. N. (c) "Insurance Costs" means all property and liability insurance premiums with @- respect to the Parking Lot required to be carried by Grantor under Sections 6.1 and 6.2 below, including any deductibles incurred in connection with any covered loss. 7. Insurance and Indemnification. 7.1 Property Insurance. Prior to any exercise of Grantee's rights herein, Grantor shall maintain such property insurance on the Mel's Property as it shall determine in its reasonable judgment. In the event the Mel's Property is developed with a parking garage or Grantee provides Substitute Property in which the Parking Spaces are in a garage (the "Garage"), Grantee shall maintain or cause to be maintained, subject to such reasonable deductibles as Grantee may determine, property insurance on the Garage in an amount not less than 100% of the full replacement cast of such 'improvements, without deduction for depreciation, including the cost of 'debris removal, insuring against loss or damage by fire and such other risks as may be covered from time to time by a "Causes of Loss—Special Form" policy or its equivalent and such other insurable hazards and containing such additional coverages and endorsements as Grantor, Grantee or their respective lenders may request from time to time. The property insurance may cover loss due to earthquake, earth movement and/or flood, as determined by Grantee. Grantee may maintain such property insurance in whole or in part under blanket policies. The cost of such property insurance, including any deductibles paid and any earthquake, earth movement and/or flood insurance premiums, shall be included as part of the Operating Expenses; provided the cost of any additional coverages and endorsements requested by Grantor shall not be part of Operating Expenses, but paid solely by Grantor., 0 7.2 Commercial Liability Insurance. Prior to any exercise of Grantee's rights herein, Grantor shall maintain such commercial liability insurance on the Mel's Property as it shall determine in its reasonable judgment. In the event the Mel's Property is developed with the Garage, Grantor and the Grantee shall at all times, at its sole cost and expense, keep in full force and effect a policy of commercial general liability insurance ensuring against claims or liability arising out of the use or maintenance of the Garage in an amount which is not less than Two Million Dollars ($2,000,000.00) per occurrence, covering bodily injury to persons, including death, and damage to property, and including automobile liability coverage and contractual liability endorsement; shall insure the hazards of the insured party's operations thereon, including the acts of its independent contractors; and shall name the other party to this Agreement as an " additional insured.." Notwithstanding the foregoing, if a party hereto is the City of Auburn, (the "Governmental Owner") the insurance may be completely met by the Governmental Party ' s membership in the Washington Cities Insurance Authority ('WCIA a municipal insurance pool. So long as the Governmental Owner is providing the insurance required hereunder through the WCIA, the Governmental Owner w'111 not be required to provide policies or certificates of insurance, and will not be required to name Grantee or any other party or person as an "additional insured "additional named insured D , " named insured," "loss payee, " or any similar designation-. The Governmental Owner shall, upon the Grantor's request therefor, provide reasonable evidence of the Governments! Owner's continued participation from time to time thereafter in the WCIA,, 13 7.3 Waiver of Claims; Subrogation. The parties, in the exercise of their commercial business judgment, acknowledge that the use of insurance is the best way to protect against the risk of loss to their respective properties and economic interests. Accordingly, (a) Grantor hereby waives its right of recovery, claims, actions or causes of action against the Grantee for loss or damage to the Mel's Property, the Parking Lot, the Garage, the Substituted Property, or any personal property therein of Grantor and its officers, employees, and agents (collectively, the "Grantor Parties") to the extent of any insurance proceeds paid to the party suffering the loss and any additional Insurance proceeds that would have been paid to the party suffering the loss had the insurance required under this Agreement been carried by such party-' and (b) Grantee hereby waive their rights'of recovery, claims, actions or causes of action against the Grantor for loss or damage to the Mel I s Property, the Parking Lot, the Garage, the Substituted Property, or any personal property therein of Grantee and its officers employees and agents ("Grantee Parties") to the extent of any insurance proceeds paid to the party suffering the loss and any additional insurance proceeds that would have been paid to the party suffering the loss had the party obtained the same insurance coverage required under this Agreement had been carried. Each party shall cause any insurance policy obtained by it (including the insurance required under this Article 6) to provide that the insurance company waives all right to recover by way of subrogation against the other. 7.4 Indemnification. Subject to the waiver of claims under Section 6.3 above, (a) Grantor agrees to defend, indemnify and hold harmless Grantee from and against all claims, demands, losses, liabilities, damages, actions, proceedings, expenses and costs ('Including reasonable attorneys' fees and costs of suit) of any nature whatsoever brought by third parties and arising out of or resulting from the Grantors use of the Parking Lot, the Garage, the Substituted Property, o r from any other activity, work, o r thing done, permitted o r suffered by the Grantor in, on or about the Parking Lot, the Garage, or the Substituted Property; and (b) Grantee agrees to defend, indemnify and hold harmless Grantor from and against all claims, demands, losses, liabilities, damages, actions, proceedings, expenses and costs (including reasonable attorneys' fees and costs of suit) of any nature whatsoever brought by third parties and arising out of or resulting fro m the Grantee's use of the Parking Lot, the Garage, the Substituted Property, or from any other activity, work, or thing done, permitted or suffered by the Grantee in, on or about the Parking Lot, the Garage, or the Substituted Property. In the event of concurrent negligence, the indemn'ify'ing party shall only be liable for that portion of liability related to the percentage of its respective negligence or misconduct. 8. Arbitration. In the event of any dispute between Grantor and Grantee which cannot be resolved, such dispute shall be determined by arbitration in King County, Washington, under the American Arbitration Association ("AAA") Commercial Arbitration Rules with Expedited Procedures in effect on the date hereof, as modified by this Agreement. There shall be one arbitrator selected by each party within seven days of the arbitration demand and a third arbitrator mutually agreed upon by the parties, or, if the parties fail to designate the arbitrator within such time period, Then an arbitrator shall be appointed in accordance with the procedures set forth in the applicable AAA rules. Anyi'ssue about whether a claim must be arbitrated pursuant to this provision shall be determined by the arbitrator. At the request of either party made not later than 75 days after the arbitration demand, the parties agree to submit the dispute to nonbinding mediation which shall not delay the arbitration hearing date. There shall be no substantive motions or discovery, except the arbitrator shall authorize such discovery as may be necessary to ensure a fair hearing, which shall be held within 120 days of the demand and concluded within two days. These time limits 14 are not jurisdictional. The arbitrator shall apply substantive law and may award injunctive relief or any other remedy available from a judge including attorney's fees and costs to the prevailing party, but the arbitrator shall not have the power to award punitive damages. 9. Term. If not exercised prior thereto, the rights herein granted to Grantee shall expire exactly ten (10) years from the date this Agreement is recorded in the public records of King County, Washington. The parties may hereafter agree to extend the term of this Agreement; any such extension shall be in a writing executed by the Grantor and Grantee. 10. Notices. All notices, consents, approvals or demands required under this Agreement shall be in writing and shall be deemed delivered when either. (a) deposited in the United States mail, certified or registered, postage prepaid; (b) transmitted by telegraphic or electronic means or by recognized courier service, with proof of service provided, or (c) delivered in person; in any event addressed to or delivered to the appropriate party at all addresses for such party, as follows: APP: Auburn Professional Plaza, LLC c/o Michael John Klein, Esq. 5743 Corsa Avenue, Suite 216 Westlake Village, California 91362 with concurrent copies to: Auburn Professional Plaza, LLC P.O. Box 1294 Auburn, Washington 98071,,1294 Attent'i'on -4 Jeffrey Oliphant, President and to: Anthony L. Rafel, Esq. Rafel Law Group, PLLC 999 Third Avenue, Suite 160Q Seattle, Washington 98101 The City., City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attent'i'on Mayor with concurrent copies to. City of Auburn 25 West Main Street Auburn, Washington 980011-4998 Atte ntion: Director of H u m a n ResourceslRisk and Property Management and to: 61 City of Auburn 25 West Main Street Auburn, Washington 98001-4998 Attention: City Attorney or to such other and additional addresses as either party may from time to time designate for this purpose.. 11. Other Provisions. 11.1 Runs with the Land; Assignment. The covenants, conditions, restrictions and rights set forth herein shall run with the Mees Property and, if applicable, the Substituted Property, and shall, subject to the terms and limitations set forth in Section 11.2 below, benefit and be binding upon Grantor and Grantee and their respective successors and assigns. The rights herein granted to APP are freely assignable by APP, upon recordation of such assignment in the public records of King County, Washington. Notwithstanding anything herein to the contrary, no rights in, to or for the general public are created hereby.. 11.2 Subordination of MortaaLqes,,, Any mortgage, deed of trust, or other security instrument (a "Mortgage") now or hereafter placed upon the Mel s Property, or any portion thereof, or otherwise including the Mel's Property, including any amendments, replacements, renewals and extensions thereof, shall be subject to and subordinate to this Agreement, as the same may be amended from time to time. 11.3 Estoppel Cerfiflicates, Within fifteen (15) days of a written request of a party, the other party shall execute, acknowledge and deliver to the requesting party ori'ts designee a written statement confirming the status of such matters under this Agreement as are set forth in such written request from the requesting party. It is intended that such statements may be relied upon by lenders providing financing or proposed tenants, purchasers or assignees of such requesting party's property. if the recipient party shall fail to respond within thirty (30) days of receipt of such written request as provided herein, the recipient party shall be deemed to have admitted the accuracy of any information supplied by the requesting party to a prospective lender, tenant, purchaser or assignee and that there are no uncured defaults in the requesting party's performance. 11.a Construction. This Agreement and the grants of rights herein shall not be strictly construed but shall be given a reasonable construction so that theintention of Grantee to obtain long term and commercially usable enjoyment of the development rights herein granted i 'F s carried out.. 11.5 Attorneys' Fees. In connection w'i'th this Agreement and its performance, APP and the City shall each pay their own attorney's fees,, In the event of any default or other breach by a party to this Agreement, the prevailing party shall be entitled to recover attorney's fees in the any action or arbitration to enforce the provisions hereof. The term " attorney's fees" as used herein and elsewhere in this Lease shall mean and include all reasonable legal fees and charges, including appellate fees and charges, paralegal fees and charges, court, filing, and process fees, marshal's and sheriff's fees and charges, investigative fees and charges, and all other sums related thereto. 16 11.6 Force Majoeure. Notwithstanding anything contained in this Agreement to the contrary, any delay in the performance of any obligation under this Ag reeme n t shall be excused, if and so long as the performance of the obligation is prevented, delayed or otherwise hindered by acts of God, fire, earthquake, flood, explosion, actions of the elements, war, riots, mob violence, inability to procure labor, equipment, facilities, materials or supplies in the open market, failure of transportation, strikes, lockouts, actions of labor unions, condemnation, court orders, operation of laws, orders of governmental or military authorities or any other causes, whether similar o r dissimilar to the foregoing, not within the co ntro I of such party (other than lack o r inability to procure money to fulfill its commitments and obligations under this Agreement). 11.7 Severability. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held Inval'i'd or unenforceable, such provi's'ion shall be modified to the extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. 11.8 Governing Law. This Lease shall be9overned and iPnterreted solely by the laws of the State of Washington. Venue for any action hereunder or relating hereto shall solely bein King County, Washington. 11.9 captions., Captions of Sections and subsections of this Agreement are for convenience only and shall not be considered in resolving any questions of interpretation or construction of any term, covenant or provision. 11,110 Time. Time is of the essence of this Agreement and of each and every provision thereof. 11.11 Written Agreement. This Agreement, together with prior and concurrent written agreements to the extent not modified herein, contains the entire agreement of the parties. It is understood that there are no verbal agreements between the parties hereto. 11.12 Non -Waiver. No covenant, term or condition of this Agreement (or breach thereof} shall be deemed waived except if expressly waived in a written instrument executed by the waiving party specifically reciting the covenant, term or condition (or breach thereoO being waived, and any such waiver of such covenant, term, condition or breach, shall not be deemed to be a waiver of any preceding or succeeding, covenant, term, condition, or breach. [This page ends here.] 17 EN WITNESS WHEREOF, APP and the City have duly executed this Agreement as of the day and year first above wr'i'tten,, AUBURN PROFESSIONAL PLAZA, LLC a Washington limited liability company By: Oliphant Real Estate Services, Inc. a Washington corporation its manager and managing member 4 By& � -i I T, Malt i =to] COUNTY OF Jeffrey Oliphant, President On , 2010 before me, — .1 ,Notary Public, personally appeared Jeffrey Oliphant, personally known to me to be the person whose name is subscribed to .the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s),, or the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY 18 THE CITY OF AUBURN a municipal corporation Peter Lewis, Mayor Approved: City Attorney STATE OF WASHINGTON COUNTY OF KING On 1 2010 before me, ,Notary Public, personally appeared Peter Lewis, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the 11 instrument the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY [LJ EXHIBIT "C" MEMORANDUM OF OPTION TO PURCHASE .1 ASTER RECORDING RETURN TO: Auburn Professional Plaza, LLC c/o Michael Join Klein, CPA 5743 Corsa Avenue, Site 216 Westlake Village, CA 91362 20 Document Title.: vs MEMORANDUM OF OPTION TO PURCHASE Grantor: CITY OF AUBURN Grantees: AUBURN PROFESSIONAL PLAZA, LLC Abbreviated Legal [REVISE] Description: Lots 5-7 Blk, O, L.W. Ballard's Park. Add. Vol. 3, pg. 91; Lots 1-4 B I k, O, 1 5t Add. to Town of Slaughter, Vol. 2, pg. 84 (Full legal description on Exhibit A attached hereto) Assessor's Tax [REVISE] Parcel Numbers: 049200-0595; 449200-0605; 781620-0030; 781620-0435 781620-0025; 781620-0020; 781620-0015-1 781620-0010-p 7$1620-0045 Reference Number of None Related Documents: 20 MEMORANDUM OF OPTION TO PURCHASE AUBURN PROFESSIONAL PLAZA, LLC, ("APP") and THE CITY OF AUBURN, a code city entered into an agreement dated which provides among other things, that for and performance therein set forth and upon the terms, forth in length therein:0 a Washington limited liability company � of the-- state of Washington ("the City") 12 2410, ("the Agreement"), in consi'deration of the covenants and conditions, covenants and provisions set 1. Pursuant to the Agreement, APP agreed to sell, and the City agreed to purchase certain property in that certain Condominium Project known as Auburn Professional Plaza, a Condominium, as recorded under the certain Condominium Map in the official records of King County, Washington under recording no. (the "APP Condominium"). Included as part of the property sold to and purchased by the City is that property legally described as Unit 390 of the APP Condominium ("Unit 39Q"). 2. Pursuant to the Agreement, the City granted APP the right to repurchase Unit 390. Said right of repurchase must be completed within two (2) years after the date of recordation of this Memorandum of Option of Purchase. 3. The Agreement sets forth the price, terms, and other conditions concerning the rights herein referenced.. 4. The herein referenced Agreement is made upon the terms, conditions, covenants and provisions set forth at length therein, each and all of which terms, conditions, covenants and provisions are hereby incorporated herein with the same force and effect as if set out at length herein. To the extent the provisions of this Memorandum of Option to Purchase conflict with the provisions of the Agreement, the prov'is'ions of the Agreement shall prevail and control. [This page ends here.] 21 IN WITNESS WHEREOF, APP and the City have duly executed this Memorandum of Lease as of the day and year first above written. STATE OF COUNTY OF Cli AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company By: Oliphant Real Estate Services, Inc. a Washington corporation its manager and managing member By: Jeffrey Oliphant, President 1 2010 before me, Notary Public, personally appeared Jeffrey Oliphant, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his ,F signature on the instrument the person(s), or the entity upon behalf of which he acted, executed the instrument. 0 WITNESS my hand and official seal., SIGNATURE OF NOTARY 22 THE CITY OF AUBURN a municipal corporation , By: Approved: City Attorney STATE OF WASHINGTON CfZ�I�I�'L+]�:U�C� Peter Lewis, Mayor On 1 2010 before me, Notary Public, personally appeared Peter Lewis, personally known to me to b. be the person whose name is subscribed to the within j nstrument and acknowledged to me that he executed the same in his authonzed capacity, and that by his signature on the i nstrument the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal.- SIGNATURE OF NOTARY 23 EXHIBIT "D" FIRST AMENDMENT TO PARKING GARAGE LEASE AGREEMENT 0 THIS FIRST AMENDMENT TO PARKING GARAGE LEASE AGREEMENT (this "First Amendment") is entered into as of the by and between City of Auburn, a Washington municipal corporation (hereafter referred to as " Landlord") and Auburn Professional Plaza, LLC, a Washington limited liability company (hereafter referred to as "Tenant"), and is in reference to the following.. A. Landlord and Tenant entered into that certain Parking Garage Lease Agreement dated as of December 15, 2008 {"Parking Garage Lease") concerning portions of the Parking Facility therein described. B. As required by and in consideration of the covenants and required performance under that certain City -APP Agreement between the parties dated , 2010 (the "City -APP Agreement") ,the parties desire to amend the Parking Garage Lease.. 0 Now, therefore, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Unless otherwise defined herein, all capitalized terms herein shall be as defined in the Parking Garage Lease.. 2,, Reference is made to Article 1 of the Parking Garage Lease. The Commencement Date was January 7, 2010 and the last day of the Primary Term (Expiration Date) shall be January 31, 2025. Tenant's rights to the Options Terms shall remain in effect. 3. Section 1. 1 (a) is amended by ad ding a provision at the end of that section as follows: "Primary Parking" mean a tDt31)f sixty-six (66} Parking Stalls. "Secondary Parking" shall mean a Total of fifty-nine (59) Parking Stalls.- 4, Section 1. 1 (b) is amended in its entirety and shall hereafter provide as follows,: (b} TERM: i. For the Primary Parking: (w) an initial term of 15 years beginning on January 7, 2010 and expiring on January 31, 2025 ("Primary Parking Initial Term"}. (x) four (4) Option Terms of ten (10) years each ("Primary Parking Option Terms"). 24 (y) The Primary Parking Initial Term and the Primary Parking Option Terms are collectively referred to as the "Primary Parking Term" . {z} The defined phrase "Primary Term" in the Parking Garage Lease shall have the same meaning as Primary Parking Initial Term For the Secondary Parking: (x) an initial term of approximately 4 years and 9 months, beginning on May 9, 2070 and ending April 30, 2015 ("Secondary Parking Initial Term". (y) one (1) Option Term of five (5) years ("Secondary Parking Option Term"). (z) The Secondary Parking Initial Term and the Secondary Parking Option Term are collectively referred to as the "Secondary Parking Term".. 5, Sections 1. 1 (e) and 3.1 are amended as follows: (a) For Primary Parking, Tenant agrees to pay as follows: W . for 16 Parking Stalls, $0 for rent, plus a proportionate share of Add'it'ional Rent and/or. Operating Costs, plus Leasehold Excise Tax based on the per - Parking stall Rent due on the other Primary Parking Stalls. ii. for the remaining 50 Parking Stalls; as set forth in section 1 and 3 of the Park'i'ng Garage Lease. 0 (b) For Secondary Parking, Tenant agrees to pay as follows: 0 i. for the SecondaryParking Initial Term, $45 per Parking Stall per Month, plus Additional Rent and/or Operating Costs, plus Leasehold Excise tax; ii. for the Secondary Parking Option Term, the "fair market rental value" not to exceed the then -current rent for the Primary Parking, plus Additional Rent and/or Operafi'ng Costs, plus Leasehold Excise Tax. Fair market -rental value shall be determined in accordance with section 3.2 of the Parking Garage Lease. 6. Section 5.8 of the Parking Garage Lease is hereby deleted. 7. The Parking Garage Lease shall remain in full force and effect. and, except as set forth herein, shall be unmodified. [This page ends here.] 25 IN WITNESS WHEREOF, Landlord and Tenant have duly executed this First Amendment as of the day and year first above written. AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company By: Oliphant Read Estate Services, Inc. a Washington corporation its manager and managing member By -1 STATE OF ILI 116111 � I waled t Jeffrey Oliphant, President On 1 2090 before me, Notary Public, personally appeared Jeffrey Oliphant, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s),� or the entity upon behalf of which he acted, executed the instrument.. WITNESS my hand and official seal. SIGNATURE OF NOTARY 26 THE CITY OF AUBURN a municipal corporation Peter.Lewols, Mayor Approved: City Attorney STATE OF WASHINGTON COUNTY OF KING On 2010 before me, ,Notary Public, personally appeared Peter Lewis, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the entity upon behalf of which the person acted, executed the instrument. 0. WITNESS my hand and official seal. SIGNATURE OF NOTARY 27 0 EXHIBIT"E" MEMORANDUM OF PARKING GARAGE LEASE AFTER RECORDING RETURN TO: Auburn Professional Plaza, LLC c/o Michael John Klein, CPA 5743 Corsa Avenue, Suite 216 Westlake Village, CA 91362 Document Title: MEMORANDUM OF PARKING GARAGE LEASE Grantor: CITY OF AUBURN Grantees: AUBURN PROFESSIONAL PLAZA, LLC Abbrev'i'ated Legal [INSERT] L #- Description: (Full legal description on exhibit A attached hereto} Assessor's Tax [INSERT] Parcel Numbers.. Reference Number of None Related Documents: 28 MEMORANDUM OF PARKING GARAGE LEASE AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company ("Tenant') and THE CITY OF AUBURN, a code city of the state of Washington ("the Landlord") entered into that certain Parking Garage Lease dated December 15, 2008, and that certain First Amendment to Parking Garage Lease, dated , 201p (together the "Parking Garage Agreement"), which provides among other things, that for and in consideration of the covenants and performance therein set forth and upon the terms, conditions, covenants and prov'is'ions set forth in length therein: 1. Landlord leases to Tenant and Tenant hires from Landlord the Parking Stalls described in the Parking Garage Agreement for a period commencing upon January 7, 2D10 and expiring January 31, 2025. Under the Parking Garage Agreement, Landlord granted to Tenant four (4) options to extend the term of the Parking Garage Agreement for ten (10) years each.. 2. The Parking Stalls leased by Landlord to Tenant is a portion of a Parking Garage Condominium Unit located on the real property located in the City of Auburn, County of King, Washington, legally described on Exhibit A attached hereto (the "Parking Garage"). 1h 3. The hereP. in referenced Parking Garage Agreement is made upon the terms, conditions, covenants and provisions set forth at length therein, each and all of which terms, conditions, covenants and provisions are hereby incorporated herein with the same force and effect as if set out at length herein. To the extent the provisions of this Memorandum of Parking Garage Lease conflict with the provisions of the Parking Garage Agreement, the provisions of the Parking Garage Agreement shall Prevail and control. [This page ends here.) 29 IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Memorandum of Lease as of the day and year first above written.. AUBURN PROFESSIONAL PLAZA, LLC, a Washington limited liability company By: Oliphant Real Estate Services, Inc. a Washington corporation its manager and managing member By: STATE OF COUNTY OF Jeffrey Oliphant, President On 2010 before me, , Notary Public, personally appeared Jeffrey Oliphant, personally known to me to be the person whose name is subscribed to the within instrument and 'I' acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s), or the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal,, SIGNATURE OF NOTARY 30 THE CITY OF AUBURN a municipal corporation Peter Lewis, Mayor Approved: City Attorney STATE OF WASHINGTON COUNTY OF KING On 2010 before me, ,Notary Public, personally appeared Peter Lewis, personally known to me to be the person -whose name is subscribed to the wi'thi'n instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the entity upon behalf of which the person acted, executed the instrument.. WITNESS my hand and official seal. SIGNATURE QF NOTARY 31 IF EXHIBIT "A" TO MEMORANDUM OF PARKING GARAGE LEASE ro LEGAL DESCRIPTION [to follow] 32