HomeMy WebLinkAboutReg 2008-08-18 Item 6 - Public Hearing - Multi-Family Condominium Project with Mastero Properties COUNCIL AGENDA SYNOPSIS
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ITEM-INE-ORMATION
CAS NUMBER: 08-098 I ORIGINAL AGENDA DA 1E: AUGUST 11, 2008
AGENDA ITEM TITLE A resolution authorizing the Mayor to enter into a Development Agreement with
Mastro Properties for a multi family condominium project.
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 08 -11-08 Ibftg Date Ibltg Date 08/18/08 Alts Date Illtg Date Illtg Date 08/18/08 IlMtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW/
SPONSOR'S Development Agreement with Mastro Properties for a multi family condominium project.
SUMMARY
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 07/28/08
RECOMMENDATIONS:
SPONSOR /ADIrN. Consideration and discussion by Council
COM.rrrlEE Unanimous Approval; Forward to Committee of the Whole
COSTJMPACr FUND S_O_URCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG DATE 1 OF-COUNCIL ACTION
08/11/08 Forward to next Regular Meeting
MTG. DATE ATTACHMENTS
08/11/08 Informational memorandum dated 8/6/08
Draft resolution with attached Develoment Agreement with Mastro Properties 1
2006 Development Agreement with Fountain Park
Design schematics for the previously approved project
Minutes from the Community Affairs and Parks Committee meeting of 7/28/08
08/18/08 Resolution in final form with attached Development Agreement
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C ity of Tuk
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AUTHORIZING THE MAYOR TO ENTER INTO A
DEVELOPMENT AGREEMENT WITH MASTRO PROPERTIES FOR THE
DEVELOPMENT OF A MULTI -FAMILY CONDOMINIUM PROJECT.
WHEREAS, the City previously entered into a Development Agreement with Fountain
Park, LLC, for the development of a mixed -use, owner occupied residential project at the
property located north of Longacres Way /south of I405 and between Union Pacific
Railroad and BNSF Burlington Northern Santa Fe Railroad tracks, described as King County Tax
Parcel Number 2423049037; and
WHEREAS, that agreement was duly executed as Contract No. AG06 -097, and
recorded with the King County Recorder's Office Recording Number 20061120001126; and
WHEREAS, since construction of Fountain Park development did not commence, the
Fountain Park Development Agreement expired; and
WHEREAS, Mastro Properties subsequently acquired the property by deed in lieu of
foreclosure; and
WHEREAS, the City and Mastro Properties now mutually agree to enter into a
Development Agreement to proceed with the development as contemplated in the
Fountain Park Development Agreement and agree to be bound by its terms and conditions;
and
WHEREAS, on August 18, 2008, the Tukwila City Council held a public hearing to
consider this Development Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Sect 1. The City Council approves and hereby authorizes the Mayor to execute the
Development Agreement with Mastro Properties, attached hereto, and made a part hereof
by reference.
Section 2. The City Clerk is hereby directed to record a fully- executed copy of this
Development Agreement with the King County Recorder's Office.
Section 3. This resolution shall become effective immediately upon its adoption.
PASSED BY THE C1"1'Y COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Council Meeting thereof this day of 2008.
ATTEST /AUTHENTICATED:
Joe Duffie, Council President
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Office of the City Attorney Resolution Number:
Attachment Development Agreement with Mastro Properties
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MD :ksn 8/1212008 Page 1 of 1
DEVELOPMENT AGREEMENT BETWEEN MASTRO PROPERTIES
AND THE CITY OF TUKWILA FOR THE DEVELOPMENT OF A
MULTI- FAMILY CONDOMINIUM PROJECT
I. PREAMBLE
This DEVELOPMENT AGREEMENT "Agreement between MASTRO
PROPERTI KS "Developer and the CITY OF TUKWILA "City") is entered into pursuant to
the authority of RCW 36.70B.170 through .210, under which a local government may enter into
a development agreement with any entity having ownership or control of real property within its
jurisdiction.
II. RECITALS
A. The City previously entered into development agreement #06 -097 with Fountain
Park, LLC "Fountain Park King County recording no. 20061120001126, for the development
of a mixed -use, owner- occupied residential project in the Transit- Oriented Development
"TOD area of the Tukwila Urban Center "TUC It was contemplated that this
development, commonly known as "Tukwila Townhomes," would be an approximately 300 unit
mixed -use residential development with approximately 5,000 square feet of retail space, more
fully explained in the design schematics submitted to the City on September 12, 2006 by a prior
developer.
B. The Fountain Park development agreement also included a property exchange and
a temporary easement provision to facilitate the "Strander Project." This project included the
relocation of Union Pacific Railroad "UPRR right -of -way and track from its current location
to a location adjacent to and west of the existing Burlington Northern right -of -way. It was
agreed that upon UPRR's vacation of its current right -of -way to the City, the City would also
convey a portion of the vacated right -of -way to Fountain Park.
C. The City and Fountain Park completed the property exchange and the only
pending land exchange relates to 43 feet of the UPRR right -of -way. The condition for the
expiration of the temporary easement has been met; therefore, the temporary easement has
expired.
D. The Tukwila Station development proposed by Fountain Park, however, was
never built. A portion of the land transaction was completed, and 43 feet of UPRR right -of -way
exchange is pending. However since the construction of Fountain Park development did not
commence, the Fountain Park development agreement expired.
E. The Developer subsequently acquired the Fountain Park property by deed in lieu
of foreclosure since the Developer was the lender to Fountain Park. The Developer would like to
proceed with the development as contemplated in the Fountain Park development agreement,
which was for the development of a mixed -use, owner occupied residential project with
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approximately 300 residential units and approximately 5,000 square feet of retail space, more
fully explained in the design schematics submitted to the City on September 12, 2006, by a prior
developer. This is agreeable to the City.
F. As portions of the Fountain Park development agreement are no longer applicable
and to clarify those portions that are still in effect, the parties have agreed to enter into this
development agreement.
G. A development agreement must be approved by ordinance or resolution after a
public hearing (RCW 36.70B.200).
H. A public hearing for this development agreement was held on August 18, 2008,
and the City Council approved this development agreement by Resolution on
BASED ON THE FOREGOING, and because successful development will be of long
term benefit to the City and Developer, the parties hereby agree as follows:
111. AGREEMENT
3.1. The Property. The property is legally described in Exhibit A, attached hereto and
incorporated herein by this reference, located at 7300 Longacres Way, Tukwila, WA, Assessor's
property tax number 2423049137, "Property
3.2 Parties.
A. The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188.
B. The "Developer" is a private enterprise which owns the Property in fee, and
whose principal office is located as follotivs: Mastro Properties, 510 Rainier Avenue South,
Seattle, WA 98144.
3.3 Effective Date. This Agreement shall become effective upon approval by the Tukwila
City Council and execution by both Parties.
3.4 Termination of Previous Agreements. All previous development agreements entered into
by the City related to this Property and/or the Tukwila Station development are terminated. This
provision shall survive the expiration of this Agreement.
3.5 Vested Rights. Developer shall be vested to the following approvals for three years from
the effective date of this Agreement:
A. Design Review Approval granted by the City's Board of Architectural Review
dated April 29, 2005. File Number L05 -015.
B. Conditional use peuliit approved by the City's Planning Commission on April 29,
2005. File Number L05 -014.
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3.6 Previously Agreed Upon Terris.
A. Upon completion of the relocation of the UPRR tracks and the City's acquisition
of the existing UPRR right -of -way "Union Pacific Site more fully described in Exhibit B,
attached hereto, the City shall convey to Developer for peinianent parking purposes the Union
Pacific Site. This conveyance shall be detailed in a faunal conveyance document that will be
executed at the time the City acquires the Union Pacific Site. As part of the conveyance,
Developer shall provide the City with a bond or assigned saving account for 150% of the
estimated cost of constructing peiuianent parking on the Union Pacific Site. This pemianent
parking shall be in confouuiance with all applicable City regulations and shall be completed
within two years of the City's conveyance of the Union Pacific Site.
B. Upon public notice by the City of its intent to sell the approximately 57 feet of
remaining vacated UPRR right -of -way running adjacent to the Union Pacific Site, Developer
shall submit a bid to the City in confomnance with the City's bid requirements for the purchase
of this property. Developer's bid shall be no less than the property's Fair Market Value at the
time the City makes the property available for sale.
C. Developer shall extend the existing sidewalk, located on the north side of the
Tukwila Station property, west to the intersection with West Valley Highway. The construction
and design standards of the sidewalk must be acceptable to the City's Public Works Director.
D. The City is not responsible for procuring parking for Developer's development
that was lost due to the termination of the Fountain Park temporary parking easement.
E. This Agreement does not guarantee any project approval or that other conditions
outside the terms of this Agreement will not be imposed by the City.
3.7 Termination.
A. This Agreement may be temiinated upon mutual agreement of the Parties.
B. This Agreement shall terminate upon the abandonment of the development by
Developer or if Developer does not construct the development as contemplated by the approval
identified above.
C. This Agreement shall terminate if Developer fails to submit complete
development permit applications within one year from the effective date of this agreement.
IV. GENERAL PROVISIONS
4.1 Covenants Running With the Land. The conditions and covenants set forth in this
Agreement and incorporated herein by the exhibits shall run with the land and the benefits and
burdens shall bind and inure to the benefit of the parties. The Developer and every purchaser,
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assignee or transferee of an interest in the Property, or any portion thereof, shall be obligated and
bound by the temis and conditions of this Agreement, and shall be the beneficiary thereof and a
party thereto, but only with respect to the Property, or such portion thereof, sold, assigned or
transferred to it. Any such purchaser, assignee or transferee shall observe and fully perfoini all
of the duties and obligations of a Developer contained in this Agreement, as such duties and
obligations pertain to the portion of the Property sold, assigned or transferred to it.
4.2 Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble
paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth
herein.
4.3 Severability. If any teitn or provision in this Agreement, or the application of any tens or
provision in this Agreement to a particular situation, is held by a court of competent jurisdiction
to be invalid, void, or unenforceable, the remaining tei_nis and provisions of this Agreement, or
application of this Agreement to other situations, shall continue in full force and effect unless
amended or modified by mutual consent of the Parties. Notwithstanding the foregoing, if any
material provision of this Agreement or the application of such provision to a particular situation
is held to be invalid, void, or unenforceable, either Party may terminate this Agreement by
providing written notice of teilnination to the other Party.
4.4 Applicable Law/Venue. This Agreement shall be construed and enforced in accordance
with the laws of the State of Washington. The venue for any dispute arising under this
Agreement shall be King County Superior Court.
4.5 Notice of Default/Opportunity to Cure/Disnute Resolution. In the event a Party, acting in
good faith, believes the other Party has violated the teens of this Agreement, the aggrieved Party
shall give the alleged offending Party written notice of the alleged violation by sending a detailed
written statement of the alleged breach. The alleged offending Party shall have thirty (30) days
from receipt of written notice in which to cure the alleged breach. This notice requirement is
intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation.
Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process
for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the
terms of this Agreement shall not be filed until the latter of (a) the end of the 30 -day cure period,
or (b) the conclusion of any dispute resolution process.
4.6 Attorneys' Fees. In the event of any litigation or dispute resolution process between the
Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any
award of attorneys' fees.
4.7 No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto
only and is not intended to benefit any other person or entity, and no person or entity not a
signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever
under this Agreement. No other person or entity not a Party to this Agreement may enforce the
tennis and provisions of this Agreement.
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4.8 Entire Agreement. This Agreement and its exhibits represent the entire agreement of the
Parties with respect to the subject matter hereof. There are no other agreements, oral or written,
except as expressly set forth herein.
4.9 Authority. The Parties each represent and warrant that they have full power and actual
authority to enter into this Agreement and to carry out all actions required of them by this
Agreement. All persons are executing this Agreement in their representative capacities and
represent and warrant that they have full power and authority to bind their respective
organizations.
4.10 Recording. The Tukwila City Clerk shall record an executed copy of this Agreement
with the King County Auditor, pursuant to RCW 36.70B.190, no later than fourteen (14) days
after all parties have signed the agreement.
4.11 Legal Representation. In entering into this Agreement, Developer represents that it has
been advised to seek legal advice and counsel from its attorney concerning the legal
consequences of this Agreement; that it has carefully read the foregoing Agreement and knows
the contents thereof, and signs the same of its own free act; and that it fully understands and
voluntarily accepts the teuiis and conditions of this Agreement.
4.12 Minor Modifications. Minor modifications from the approved development or the
exhibits attached hereto may be approved by the City's Department of Community Development
Director in accordance with the provisions of the City's code and shall not require an amendment
to this Agreement.
Nothing Agreement shall be construed to diminish, 3 Police Power. I�othin in this .l g gr restrict or limit
the police powers of the City granted by the Washington State Constitution or by general law.
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IN WITNESS WHEREOF, this Agreement has been entered into by and between
Developer and the City of Tukwila.
MASTRO PROPERTIES CITY OF TUKWILA
Date: Date:
By: By:
Its: Jim Haggerton, Mayor
Approved as to Foini:
Shelley Kerslake, City Attorney
STATE OF WASHINGTON
ss:
COUNTY OF KING
On this day of 2008, before me personally appeared
in (his/her) capacity as of Mastro
Properties, a who executed the within and foregoing instrument,
and acknowledged the said instrument to be a free and voluntary act and deed for the uses and
purposes therein mentioned, and on oath stated that he was authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
Printed Name:
NOTARY PUBLIC in and for the State of
Washington
Residing at:
My commission expires:
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STATE OF WASHINGTON
ss:
COUNTY OF KING
On this day of 2008, before me personally appeared
Jim Haggerton, known to me to be the Mayor of the City of Tukwila, a Washington municipal
corporation that executed the within and foregoing instrument, and acknowledged the said
instrument to be the free and voluntary act and deed of the City of Tukwila for the uses and
purposes therein mentioned, and on oath stated that he was authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
Printed Name:
NOTARY PUBLIC in and for the State of
Washington
Residing at:
My commission expires:
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1
Exhibit A
LEGAL. DESCRIPTION
LOTS 1 AND 2 OF CITY OF TUKWILA SHORT PLAT NO. L98 -0007 AS FILED UNDER KING COUNTY
RECORDING NUMBER 9803129013, RECORDS OF KING COUNTY, WASHINGTON.
AND THAT POR770N OF THE HENRY MEADER DONATION CLAIM NO. 46 AND OF SEC770N 24,
TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON, LYING WEST OF
THE BURLINGTON NORTHERN RAILROAD RIGHT —OF —WAY, EAST OF 77-1E UNION PACIFIC RAILROAD
RIGHT —OF —WAY, AND SOUTH OF A LINE 137 FEET SOUTH OF THE NORTH LINE OF SAID
DONATION CLAIM AND NORTH OF THE CENTERLINE OF LONGACRES WAY.
AND THE EAST 43.00 FEET OF THAT PORTION OF THE 100 FOOT WIDE UNION PACIFIC RAILROAD
RIGHT OF WAY (A.K.A. CHICAGO MILWAUKEE ST. PAUL AND PACIFIC RAILROAD) LOCATED IN
THE SOUTHWEST QUARTER OF SEC770N 24, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN
KING COUNTY, WASHINGTON, WHICH LIES NORTHERLY OF THE CENTERLINE OF LONGACRES WAY
AND SOUTHERLY OF PRIMARY STATE HIGHWAY NUMBER 1 (INTERSTATE 405)
EXCEPT THE EAST 100.00 FEET OF ALL OF THE ABOVE.
THE ABOVE DESCRIBED PARCEL CAN BE MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THAT PORTION OF LOTS 1 AND 2 OF CITY OF TUKWILA SHORT PLAT NO. L98 -0007 AS FILED
UNDER KING COUNTY RECORDING NUMBER 9803129013, RECORDS OF KING COUNTY,
WASHINGTON. AND THAT PORTION OF 77-1E HENRY MEADER DONATION CLAIM NO. 46 AND OF
SECTION 24, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M. BEING DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 1 THENCE N66 23'08 "E ALONG THE NORTH
LINE THEREOF 25.89 FEET TO POINT ON A CURVE WHOSE RADIUS POINT BEARS S6728'24 "W A
DISTANCE OF 1735.00 FEET THENCE SOUTHERLY ALONG SAID CURVE TO THE RIGHT, SAID
CURVE ALSO BEING PARALLEL TO AND 100 FEET WESTERLY OF 77-IE WESTERLY MARGIN OF THE
BURLINGTON NORTHERN RAILROAD RIGHT OF WAY, THROUGH A CENTRAL ANGLE OF 1827'07"
AN ARC LENGTH OF 558.75 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY
ALONG A CURVE TO THE RIGHT SAID CURVE ALSO BEING PARALLEL TO AND 100 FEET
WESTERLY OF THE WESTERLY MARGIN OF SAID RAILROAD RIGHT OF WAY, HAVING A RADIUS OF
2328.49 FEET THROUGH A CENTRAL ANGLE OF 06'11'57 AN ARC LENGTH OF 251.93 FEET;
THENCE S02"07'28 "W ALONG A LINE WHICH IS PARALLEL TO AND 100 FEET WESTERLY OF THE
WESTERLY MARGIN OF SAID RAILROAD RIGHT OF WAY A DISTANCE OF 555.03 FEET TO THE
GENIERLINE OF LONGACRES WAY, THENCE S8T07'47 "W ALONG SAID CENTERLINE 239.32 FEET
TO 77-1E CENTERLINE OF THE EXISTING TRACKS OF THE UNION PACIFIC RAILROAD; THENCE
NO337'43 "E ALONG SAID CENTERLINE 969.09 FEET; TO A POINT OF CURVE TO THE LEFT;
THENCE NORTHERLY ALONG SAID CURVE TO THE LEFT HAVING A RADIUS OF 3730.49 FEET
THROUGH A CENTRAL ANGLE OF 02'44'10 AN ARC LENGTH OF 178.14 FEET TO A POINT OF
COMPOUND CURVATURE; THENCE NORTHERLY ALONG SAID CURVE TO THE LEFT HAVING A
RADIUS OF 1878.02 FEET THROUGH A CENTRAL ANGLE OF 0644'42 AN ARC LENGTH OF
221.08 FEET TO THE SOUTHERLY RIGHT OF WAY MARGIN OF PRIMARY STATE HIGHWAY NO. 1;
THENCE N66 23'08 "E ALONG SAID RIGHT OF WAY MARGIN 45.10 FEET TO A POINT ON A CURVE
WHOSE RADIUS POINT BEARS S83'44'15 "W A DISTANCE OF 1921.02 FEET; THENCE SOUTHERLY
ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL ANGLE OF 01'02'03", AN ARC LENGTH
OF 34.67 FEET TO THE POINT OF BEGINNING.
SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.
CONTAINING AN AREA OF 262,050 SQUARE FEET MORE OR LESS.
TUKWILA TOWNHOMES EXHIBIT `A' Pacific 15445 53RD AVE_ S.,
SEATTLE, WA 98188
Engineering PHONE
PROJECT NO.: 08006 (220) 431 7970
DRAWN BY: CJs Design, LLC (2os) 3aa ,548
ISSUE DATE 07 -23-08 .£e S
EXHIBIT 1 Civil Engineering and v
PACENG.C
OM
PAGE 1 OF 1 Planning Consultants
08005EX —A LEGAL DESCRP.OWG
kIIBIT B1
PROPOSED LEGAL. DESCRIPTION
AREA TO BE ABANDONED BY UNION PACIFIC RAILROAD
AND ACQUIRED BY MASTRO PROPERTIES
THE EAST 43.00 FEET OF.TNE FOLLOWING DESCRIBED PARCEL:
THAT PORTION OF THE 100 FOOT WIDE UNION PACIFIC RAILROAD
RIGHT OF WAY (A.K.A.'CHICAGOOMILWAUKEE ST.•PAUL.. AMD PACIFIC
RAILROAD} LOCATED IN THE SOUTHWEST QUARTER OF SECTIQN
TOWNSHIP. 23 NORTH{ "BANGS 4 EAST,- W.M., IN COUNTY, 2.
WASHINGTON, WHICH LIES NORTHERLY OF THE CENTERLINE OF
LONGACRES WAY AND SOUTHERLY OF PRIMARY STATE HIGHWAY, "NUMBER.1. (INTERSTATE 405
CON TAINING "AN AREA OF 59,180 SQUARE FEET MORE OR LES
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