HomeMy WebLinkAbout2645 ORIGINAL
1 RESOLUTION NO. 2 6 4 5
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN,
3 WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A
PAYMENT AGREEMENT BETWEEN NORTHWEST RACING ASSOCIATES LIMITED
4 PARTNERSHIP, RACING, INC. AND THE CITY OF AUBURN, RELATING TO
THE NON DEFERMENT OF SALES AND USE TAXES TO THE CITY.
5
6 WHEREAS, the Environmental Impact Statement (EIS) for the
7 Thoroughbred Horse Racing facility had set forth anticipated
8 revenues to be derived from sales and use taxes and City
9 support was based upon these projections; and
10 WHEREAS, the State Legislature enacted a law to defer the
11 sales and use taxes for the Thoroughbred Horse Racing
12 facility; and
13 WHEREAS, the owner of the Thoroughbred Horse Racing
14 facility agrees to not defer the portion of the sales and use
15 taxes that would normally go to the City;
16 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
17 WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH
18 RESOLVES AS FOLLOWS:
19 section 1. The Mayor and City Clerk of the City of
20 Auburn, Washington are herewith authorized to execute a
21 Payment Agreement between NORTHWEST RACING ASSOCIATES LIMITED
22 PARTNERSHIP, RACING, INC. and the CITY OF AUBURN relating to
23 non deferment of sales and use taxes. A copy of said
24
25
26
Resolution No. 2645
May 23, 1995
Page 1
1
2 Agreement is attached hereto, denominated as Exhibit "A" , and
3 made a part hereof as though set forth in full herein.
Section 2 . The Mayor is hereby authorized to implement
4
5 such administrative procedures as may be necessary to carry
out the directives of this legislation.
6
DATED and SIGNED this 5th day of June, 1995.
7
8
CITY OF AUBURN
9
10
11
12 CHARLES A. BOOTH
MAYOR
13 ATTEST:
14
15
16 Robin Wohlhueter
17 City Clerk
18
19 APPROVED AS TO FORM:
20
21
22 Michael J. Reynolds,
23 City Attorney
24
25
26
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Resolution No.2645
May 23, 1995
Page 2
ORIGINAL
PAYMENT AGREEMENT
THIS AGREEMENT is made and entered into this day
of 1995, by and among the CITY OF AUBURN,
WASHINGTON, a Washington municipal corporation organized
under the Optional Municipal Code, Title 35A, hereinafter
referred to as "AUBURN", and NORTHWEST RACING ASSOCIATES
LIMITED PARTNERSHIP, a Washington limited partnership, and
RACING, INC. , a Washington corporation, its General Partner,
hereinafter collectively referred to as "RACETRACK" and
"THOROUGHBRED HORSE RACING INDUSTRY" .
WHEREAS, those entities collectively referred to as
"Racetrack" or "Thoroughbred Horse Racing Industry" are
engaged in the development of a facility in Auburn to
conduct thoroughbred horse racing; and
WHEREAS, to promote the Thoroughbred Horse Racing
Industry certain legislation has been introduced to the
State legislature which would give certain tax deferments to
the Thoroughbred Horse Racing Industry to aid them
financially in their start-up costs, 54th Legislature, 1995
Regular Session, House Bill 1248 and Senate Bill 5280 (the
(Proposed Legislation) ; and
Payment Agreement•Rac track
May 15, 1995 Veasolution 2645
Exhibit A
Page 1 Cps-race3)
WHEREAS, it is the intent of the Thoroughbred Horse
Racing Industry to not defer any taxes or fees that would be
paid to AUBURN; and
WHEREAS, the effect of the Proposed Legislation is to
defer state and local sales and use tax under Chapter 82 . 08,
82. 12 and 82 14 RCW; and
WHEREAS, the proposed Thoroughbred Horse Racing
Facility is to be located in the City of Auburn and in
accordance with the Environmental Impact Statement demands
will be placed upon AUBURN for services and AUBURN plans on
responding with services to meet the demand; and
WHEREAS, the Proposed Legislation would benefit the
Thoroughbred Horse Racing Industry; and
WHEREAS, the Proposed Legislation would have an adverse
economic effect upon AUBURN in that it could be interpreted
as deferring taxation, which AUBURN normally would have
received on a timely basis, to some point in the distant
future; and
WHEREAS, AUBURN must respond with services to the race
track immediately; and
WHEREAS, the Thoroughbred Horse Racing Industry desires
to have full services to its facilities and AUBURN desires
to provide full services; and
Payment Agreement-Racetrack
May 15, 1995
Page 2 (pa-race3)
example. In accordance with the Environmental Impact
Statement the sales taxes that would have gone to AUBURN
would have been . 0085% of . 082% which would have equalled,
in accordance with the Environmental Impact Statement, TWO
HUNDRED FORTY THOUSAND ONE HUNDRED TWENTY-FIVE DOLLARS
($240, 125) . The funds that would have been received by
AUBURN via the normal collection channels through the State
of Washington, would have been used to provide services to
the Thoroughbred Horse Racing Facility including but not
limited to costs expended by the City for inspections. This
Agreement is in contemplation of the loss of use of this
revenue on a timely basis. It is the intent of the parties
that AUBURN should timely receive these revenues
notwithstanding the existence of such legislation.
It is further agreed that the $240, 125 referred to
above is an estimated amount and that the actual amount will
be determined by calculating the amount that would have been
paid but for the deferred legislation, which actual amount
shall use the amount paid to the City prior to issuance of a
certificate of occupancy.
Payment Agreement-Racetrack
May 15,1995
Page 4 (pa-race3)
Section 3. FINANCIAL RECORDS:
The Thoroughbred Horse Racing Industry agrees to
provide to AUBURN all relevant documents which allow AUBURN
to determine the amounts it is to receive
Section 4. TERM PAYMENT AGREEMENT:
The Thoroughbred Horse Racing Industry agrees to pay to
AUBURN the sum of TWO HUNDRED FORTY THOUSAND ONE HUNDRED
TWENTY-FIVE DOLLARS ($240, 125) or such other amount as
actually determined, payments to occur on a monthly
installment basis as follows:
The Thoroughbred Horse Racing Industry, each, agree to
pay their respective portions, if any, of the sum of TWENTY
THOUSAND DOLLARS ($20, 000) per month to AUBURN, the first
payment beginning sixty (60) days after groundbreaking
(groundbreaking shall be May 19 , 1995 for purposes of
this Agreement) and continuing on the first of each month
thereafter until paid. Late payments shall accrue interest
on the late payment amount at a rate of eighteen percent
(18%) per annum.
Payment Agreement-Racetrack
May 15,1995
Page 5 (pa-race3)
Section 5. PAYBACK AGREEMENT:
The Proposed Legislation anticipates a tax deferral for
a period of ten (10) years. After the 10-year period the
Proposed Legislation requires that the Thoroughbred Horse
Racing Industry pay the deferred tax liability in equal
installments over a period of five (5) years. Should the
legislation pass in that form it would result in an ultimate
deferred payment of the taxes to AUBURN, however, under this
Agreement AUBURN will have previously been paid that amount
or some portion thereof. Therefore, AUBURN shall within two
(2) business days following receipt by Auburn from the State
return that amount paid to it by the State if it had already
been paid the said amount under this Agreement, return shall
be to the taxpayer for the specific purpose of eliminating a
taxpayer paying double.
Section 6. JOINT AND SEVERALLY LIABILITY:
It is the duty of the Thoroughbred Horse Racing
Industry to designate that party to which any funds are to
be paid once the deferred taxes are received. A failure by
the Thoroughbred Horse Racing Industry to designate in
writing within twenty (20) days of receiving written notice
from Auburn that Auburn has received payment from the State
shall result in forfeiture of those amounts to AUBURN.
Payment Agreement-Racetrack
May 15, 1995
Page 6 (pa-race3)
Section 7. VENUE AND JURISDICTION:
This Agreement shall be interpreted under the laws of
the State of Washington and venue shall lie within King
County Superior Court.
Section S. HEIRS, SUCCESSORS AND ASSIGNS:
This Agreement shall be binding upon the heirs,
successors and assigns of all parties to this Agreement
Section 9. RESPONSIBILITY FOR MONITORING PAYBACK:
The Thoroughbred Horse Racing Industry shall be
responsible to monitor payback requirements and advise
AUBURN of when such obligation is due and provide the
accounting to facilitate AUBURN's payment, if applicable.
Section 10. DISPUTE OF FINANCIAL RECORDS:
AUBURN may, at its option, require all financial
records audited at its cost However, in the event such
audit reflects an underpayment to the City larger than ten
percent (10%) , then all audit costs shall be paid by the
Thoroughbred Horse Racing Industry.
Section 11. ATTORNEY FEES AND COSTS:
In the event any party undertakes action to enforce any
provision of this Agreement, the prevailing party shall be
awarded its reasonable attorney fees and costs.
Payment Agreement-Racetrack
May 15,1995
Page 7 (pa-raceD
CITY OF AUBURN
& , A�
CHARLES A. BOOTH
MAYOR
ATTEST:
Robin Wohlhueter,
City Clerk
ADDRESS:
25 West Main Street
Auburn, WA 98001
APPROVED AS TO FORM
Michael J. Reynolds,
City Attorney
Payment Agreement-Racetrack
May 15,1995
Page 8 (pa-race3)
NORTHWEST RACING ASSOCIATES LIMITED
PARTNERSHIP
BY: RACING, INC. its general partner
BY: �7 .�
JACK E. 7DGE, JR. , its VIce,4President
ADDRESS: c/o JIM D. JOHNSTON
1420 Fifth Avenue, Suite 4100
Seattle, WA 98101-2338
RACING, INC.
BY: ,ti-i -
JACK E.7 DGE, JR. , its Vkte f resident
ADDRESS c/o JIM D. JOHNSTON
1420 Fifth Avenue, Suite 4100
Seattle, WA 98101-2338
Payment Agreement-Racetrack
May 15,1995
Page 9 (pa-race3)
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On this 19th day of May , 1995, before me, the
undersigned, a Notary Public in and for the State of
Washington, personally appeared JACK E. HODGE, JR.
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person who executed this
instrument, on oath stated that he is authorized to execute
the instrument, and acknowledged it as the Vice President of
NORTHWEST RACING ASSOCIATES LIMITED PARTNERSHIP, by RACING,
INC , its general partner, to be the free and voluntary act
and deed of said corporation for the uses and purposes
therein mentioned in this instrument.
GIVEN UNDER my hand and official seal the date
hereinabove set forth.
•.•r�A�NEy� r n --Name: JERRENE BEACH
TARY PUBLIC in and for the, State
NOTAgy of Washington, residing at King County.
4 9 _•� MY COMMISSION expires: 03/09/99
���iOA.WASN�••••
Payment Agreement-Racetrack
May 15,1995
Page 10 (pa-race3)
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On this 19th day of May , 1995, before me, the
undersigned, a Notary Public in and for the State of
Washington, personally appeared JACK E. HODGE, JR.
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person who executed this
instrument, on oath stated that he is authorized to execute
the instrument, and acknowledged it as the Vice President of
RACING, INC. , to be the free and voluntary act and deed of
said corporation for the uses and purposes therein mentioned
in this instrument.
GIVEN UNDER my hand and official seal the date
hereinabove set forth.
�1
'••• P�NE G+,S', P am JERRENE BEACH
TARP PUBLIC in and for theK Sngat�ounty
Hof Washington, residing at
MY COMMISSION expires: 03/09/99
Payment Agreement-Racetrack
May 15,1995
Page 11 (pa-race3)
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On this � day of 1995, before me, the
undersigned, a Notary Pu is in and for the State of
Washington, personally appeared CHARLES A. BOOTH and ROBIN
WOHLHUETER, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons who
executed this instrument, on oath stated that they are
authorized to execute the instrument, and acknowledged it as
the MAYOR and CITY CLERK, respectively, of THE CITY OF
AUBURN, to be the free and voluntary act and deed of said
municipal corporation for the uses and purposes therein
mentioned in this instrument.
GIVEN UNDER my hand and official seal the date
hereinabove set forth
Q� t `
= ' Pr•nt Name G c (-
r -5 � "' NOTARY PUBLIC in and for th State
.�T 1c, of Washington, residing at
�'� '§4 j• MY COMMISSION expires: (d S
Payment Agreement-Racetrack
May 15,1995
Page 12 (pa-race3)
CHARLES A. BOOTH, MAYOR FINANCE DEPARTMENT
Victor Thompson, Finance Director 25 West Main, Auburn WA 98001-4998
_ (206) 931-3033
STATE OF WASHINGTON )
)ss.
COUNTY OF KING )
I, Robin Wohlhueter, the duly appointed, qualified City Clerk of the City of
Auburn, a Municipal Corporation and Code City, situate in the County of King, State of
Washington, do hereby certify that the foregoing is a full, true and correct copy of
Resolution No 2645 of the resolution of the City of Auburn, entitled "A RESOLUTION."
I certify that said Resolution No 2645 was duly passed by the Council and
approved by the Mayor of the said City of Auburn, on the 5th day of June,1995
Witness my hand and the official seal of the City of Auburn this June 9, 1995
Robin Wohlhu ter
City Clerk
City of Auburn